Digging Deeper

Commercial Bank of Ceylon is delving deeper into the local corporate debt market by offering to subscribe, hold and sell competitively priced paper above conventional savings products. Commercial Bank of Ceylon is delving deeper into the local corporate debt market by offering to subscribe, hold and sell competitively priced paper above conventional savings products.

Having structured and invested in over Rs. 3 billion worth of paper over the past two-years, Sri Lanka’s most profitable privately held listed bank, is now offering itself as a market maker and mover for prime corporate paper.

“We are ideally placed because of our strength. We can issue instruments, subscribe, warehouse and sell it prospective clients. It benefits all, in times of inflation when investors expect interest rates to be comparatively higher,” says Harris Premaratne, Senior Deputy General Manager (Corporate Banking).

Shifting to top gear, the bank co-arranged with Capital Alliance Holdings Ltd, to raise Rs. 500 million by securitizing a chunk of Peoples’ Leasing Company’s portfolio last week.

This four-year paper is priced at a slight premium above the current prime lending rate of 9.86 percent.