Commercial Bank on Friday said it is raising Rs. 4 bn to meet general business expansion and redeem its Rs. 500 mn debenture, which matures this year.
Three billion rupees will be raised through five-year subordinated, unsecured, redeemable debentures, which carries an option of a fixed or floating interest rate.rn
rnThe floating rate issue is priced at 2 percent above the three months treasury bill, while the bank is yet to put a price for its fixed rate issue. Interest will be payable on a quarterly basis.rn
rnA further billion rupees will be raised through cumulative preference shares, carrying a 11 percent dividend, which will be redeemed in 5 years.rnrn