Sri Lanka Merchant Bank to sell Rs.2.0bn in debentures

Mar 11, 2013 (LBO) – Merchant Bank of Sri Lanka, a unit of state-run Bank of Ceylon is offering for sale up to 2.0 billion rupees of 4 and 5-year listed debentures paying between 16.5 to 17.5 percent a year. The Colombo Stock Exchange said it had approved the issue where the MBSL will offer 10 million debenture of 100 million rupees and offer another 10 million debentures if the first tranche is oversubscribed.

Listed debentures were made free of withholding tax from January 2013. Subscription will open March 20.

The 5-yar bond will pay 17.5 percent year annual coupon or 16.7 percent a year quarterly or 16.5 percent monthly.

The 4-year bond will pay 17.25 percent monthly.

The debenture has been rated ‘AA-‘ by RAM Ratings.