Sri Lanka Commercial Bank to raise Tier 1 capital with rights issue

commercial-bank

Mar 07, 2017 (LBO) – Sri Lanka’s Commercial Bank has decided to raise 10 billion rupees through a rights issue of voting and non voting shares, the company said in a stock exchange filing.

Subject to stock exchange and shareholder approval, the bank is to issue 84,515,987 ordinary voting shares at 113.60 rupees each in the ratio of one share for every ten shares held.

The bank will also issue 5,811,601 ordinary non voting shares at 90.80 rupees each in the same ratio.

It is expected to raise 9.6 billion rupees through ordinary voting shares and 527 million rupees through non voting shares after making adjustment for 2 rupees scrip dividend which is yet to be approved.

AGM of the bank is scheduled to be held on 30 March 2017 and an extraordinary meeting will also be held after the AGM to obtain shareholder approval for the rights issue.

The bank said the objective of the issue is to increase the Tier l capital of the bank in order to accommodate and facilitate future business growth of the Bank.

The current stated capital of Commercial Bank of Ceylon is 25 billion rupees.