Business
BOC’s AT1 Capital Perpetual Bonds snapped up on opening day
Bank of Ceylon successfully raised Rs. 10 billion through the issuance of Basel III Compliant, Unlisted, Rated, Unsecured, Subordinated, Perpetual, Additional Tier 1 (AT1) Capital bonds with a non-viability full and permanent write down at an issue price of Rs. 100 each on 1st December, 2020.
The initial issue of Rs. 3 billion was oversubscribed by more than three times on its opening day and the bank decided to close it on the same day.
Commenting on the issuance, the bank’s General Manager, D.P.K. Gunasekera said that this was the bank’s second AT 1 capital perpetual bond issue during this year and the oversubscription of this issuance highlights the strong confidence the investors have placed on all aspects of the bank’s performance. He also thanked the bank’s customers and investors for their confidence shown in the strength, stability and growth prospects of the bank.
Being a domestic systemically important bank that has an innate responsibility towards maintaining the financial stability and economic development of Sri Lanka the Bank looks forward to utilize these funds towards financially boosting the priority sectors of the country whilst strengthening the Tier 1 capital and enhancing the Single Borrower exposure limit encouraging entrepreneurship and investment within the country. This will largely benefit retail to large scale private and public sector enterprises to improve their businesses and eventually contribute towards the country’s overall economic performance.
The AT 1 capital perpetual bonds are not listed on the Colombo Stock Exchange and are confined to qualified investors. The bonds are irredeemable and may be callable by the Bank at its discretion at any time after 5 years from the date of issue subject to approval of the Central Bank of Sri Lanka.
The bonds carry a floating interest rate of Weighted Average 12 months Net Treasury Bill rate + 1.50% p.a. with a floor rate of 9.00% p.a. The bonds are rated AA (hyb) by ICRA Lanka Ltd.
This bond issue was approved by the Securities and Exchange Commission of Sri Lanka and Central Bank of Sri Lanka.
The managers and the registrars for the issuance was the Investment Banking Division of Bank of Ceylon.
Bank of Ceylon has a legacy of enriching the lives of Sri Lankans for over eight decades. With well over Rs. 2 Trillion in assets, BOC is the owner of the highest asset base owned by a single business entity of Sri Lankan origin.
–BoC
Business
Ceylinco Life agent among three global finalists for award
Ceylinco Life’s Ambalantota branch agent AIP Manjula has been named one of three global finalists for the prestigious Insurance Agent of the Year award at the 11th Asia Trusted Life Agents & Advisers Awards (ATLAA) 2026.
The recognition places a Sri Lankan insurance professional among the finalists in a regional field spanning South Asia, Southeast Asia, East Asia and the wider Asia-Pacific region.
Ceylinco Life said the achievement reflected the calibre and customer-focused approach of its agency force, while recognising Manjula’s professionalism and commitment to policyholders.
The award evaluates insurance agents on criteria extending beyond sales performance, including ethical conduct, client service, policy persistency, digital adoption, innovative practices and contributions to the insurance industry and community.
The awards are organised by Asia Advisers Network and Asia Insurance Review, with LIMRA as co-organiser. An independent judging and balloting process is monitored by KPMG as the official scrutineer. The judging panel comprises senior insurance executives, association presidents and industry experts from across the Asia-Pacific region.
Business
CEAT Kelani retains AA+ rating for sixth year
CEAT Kelani Holdings (CKH) has retained its National Long-Term Rating of ‘AA+(lka)’ with a Stable Outlook from Fitch Ratings for the sixth consecutive year, reflecting the company’s financial resilience and leading position in Sri Lanka’s pneumatic tyre market.
The ‘AA+(lka)’ rating, the second-highest on Fitch’s national scale, indicates a very strong capacity to meet financial commitments.
Fitch said CKH’s established market leadership and resilient financial profile remained key strengths, while noting its exposure to price-sensitive, cyclical and highly competitive markets.
The Stable Outlook reflects expectations that the company will maintain its market position despite rising input costs and increasing competition from imported tyres, while preserving adequate credit metrics during periods of weaker earnings and higher investment.
Fitch expects CKH’s established brand, extensive dealer network and adaptive pricing strategies to support its market position. Planned production facility upgrades are also expected to improve product quality, particularly in the radial tyre segment.
The rating agency expects near-term pressure on margins from higher raw material and energy costs but said the company’s low leverage and sound liquidity would provide a cushion.
CKH Chairman Chanaka De Silva said the rating reinforced the company’s focus on disciplined financial management, operational adaptability and long-term investment.
Business
Commercial Bank leads nationwide aquatic clean-up drive
Commercial Bank of Ceylon mobilised employees, customers, volunteers and community members for a nationwide coastal and aquatic clean-up campaign across 20 locations on September 19 to mark International Coastal Cleanup Day 2026.
Conducted under the bank’s sustainability platform, themed ‘Forward Together for a Cleaner Future’, the initiative covered 16 coastal locations and four inland waterways, bringing together stakeholders for a coordinated environmental conservation effort.
The flagship programme was held at Mount Lavinia Beach, with additional activities at Wellawatte and Galle Face beaches. Similar initiatives were conducted by the bank’s regional offices at locations including Kalutara, Negombo, Trincomalee, Batticaloa, Puttalam, Jaffna, Galle, Dondra, Tangalle and along the Mahaweli River.
Employees, management, Future Force volunteers, customers and their families participated alongside the Marine Environment Protection Authority (MEPA), United Nations Global Compact Network Sri Lanka, government and local authorities, environmental organisations and community members.
The bank said the initiative reflected its commitment to water stewardship after adopting Sustainable Development Goal 6 — Clean Water and Sanitation — as a priority goal in 2025.
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