Sri Lanka’s Bank of Ceylon’s latest debenture issue of Rs. 3 billion has been oversubscribed within a few hours of opening, a top official told News360.lk.
P.A. Lional, DGM of Treasury and Investment of the Bank of Ceylon, said they have already received subscriptions running over Rs. 3 billion.
“We will go up to Rs. 6 billion”, added Lional of the state run Bank.
BOC’s latest unsecured, subordinated and redeemable debentures carries a maturity period of five years and offers customers three interest payment options.
According to the Bank, the money once raised will enable it to increase its tier II capital in terms of base-II and strengthen the capital base, enhance the single borrower limit, minimize the interest rate risk and gap exposures in the bank’s assets/liability portfolio.
The funds are also expected to help the Bank to reduce the dependency on volatile short term borrowings etc.