Bank of Ceylon on Monday has raised US$ 500 million via a five year tenor dollar bond issue, which has been oversubscribed by 6.8 times.
The notes has been priced at 5.325-pct.
The Bank’s initial aim has been only to raise US$ 300 million via this offer, but has up-sized the issue owing to the high demand it has received.
BOC has attracted bids worth over US$ 2 billion from over 140 investors.
Asian investors have taken 74-pct of the allocations, while European investors have accounted for the remainder.
“The offering priced at a final coupon of 5.325%, tighter than initial guidance of 5.50% area, reflecting the quality and strength of the order book”, the Bank announced in a statement issued.
BOC says, this transaction is in line with its long-term funding strategy of diversifying its funding sources, and establishing its credit curve in the international bond markets.
“This transaction marks our second issuance in the USD bond market, and we are pleased to have captured a strong market window with this benchmark offering. We are also encouraged by the strong response and the broad participation by both international investors and private banks,” P.A. Lionel, Head of International, Treasury and Investment Banking of the BOC was quoted in the statement.
This is second time in a span of 12 months the BOC has raised US$ 500 million via issuing dollar bonds.
The earlier one was the US$ 500 million it raised during April 2012 by issuing bonds at a cost of 6.875%. The new issue priced at a yield that is more than 150 bps lower.
The sole bookrunner and sole lead-manager for the offering was UBS AG, Singapore Branch.