Sri Lanka Bank of Ceylon raises Rs6.0bn from bonds

Nov 25, 2012 (LBO) – State-run Bank of Ceylon said it had raised 6.0 billion rupees in subscriptions from a debentures and closed the offer on November 23, making it the biggest even rupee bond sale by a Sri Lanka based financial institution. The bonds came with floating and fixed coupons, with one type paying 16 percent a year before a 10 percent withholding tax.

“Large corporates as well as small investors representing a cross section of the society have subscribed for these debentures,” the bank said in a statement.

“The highest appetite of investors has been for the fixed interest rate option.”

The money will go to boost the bank’s Tier II capital and will be used for loans into agriculture, tourism, infrastructure, manufacturing and small and medium enterprises.

Bank of Ceylon is Sri Lanka’s largest commercial bank by assets. The state and state entities are its biggest borrowers.