Connect with us

Business

BOC’s AT1 Capital Perpetual Bonds snapped up on opening day

Published

on

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



Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Business

CBSL and IFC launch National Financial Inclusion Strategy

Published

on

Sri Lanka’s first National Financial Inclusion Strategy (NFIS) aunched recently, aims to make financial services more accessible, efficient, and affordable for all households and businesses in the country.

The NFIS is a joint effort led by the Central Bank of Sri Lanka—with technical and financial assistance from IFC, a member of the World Bank Group—under the IFC-DFAT Women in Work program. The development of this strategy was a multi-stakeholder effort supported by the government of Sri Lanka.

“The National Financial Inclusion Strategy symbolizes our country’s commitment towards a better and inclusive Sri Lanka that will benefit all individuals and enterprises. I believe this strategy will complement the Government’s efforts to minimize the provincial income disparities, urban-rural inequalities, and to promote inclusive growth,” said Mahinda Rajapaksa, Prime Minister of Sri Lanka.

“More importantly, this strategy prioritizes future generations, having identified financial literacy as a key pillar. The proposal to strengthen the national curriculum in this area is a positive step. Investing in the education of our younger generation is the most significant investment we can make as a nation, as this will be a particularly helpful approach to the systematic correction of the financial habits of Sri Lankans,” the Prime Minister said.

Continue Reading

Business

HNB – Havelock City partnership offers exclusive Ezy Pay Home Loans facility

Published

on

HNB PLC has partnered with Havelock City mixed-use development project to offer prospective homeowners of state-ofthe-art luxury apartments in Stratford and Melford Towers (Phase 3 – COC certified) and Peterson and Edmonton Towers (Phase 4) with the exclusive Ezy Pay Home Loans facility.

The partnership is set to offer customers the unprecedented opportunity to make a payment of only 20% and immediately occupy the limited units available in Phase 3 of the project or invest in apartments available in Phase 4, scheduled to be completed by May 2021. Further, Havelock City will take on the customer’s interest payment for one year.

“We have witnessed an increase in the demand for apartments and are aware that there is a limited stock of units available in the heart of Colombo. Therefore, we hope that this partnership with Havelock City will offer our customers looking to invest in a home of their own the facility to either move into an apartment immediately or invest in a home of their dreams,” HNB Head of Personal Financial Services, Kanchana Karunagama said.

Prospective homeowners can make use the bank’s flexible repayment options, such as the Step-up facility, which offers a repayment option in line with the customers evolving income. Customers can also obtain a maximum repayment period of 25 years for the loan facility for an attractive interest rate starting from just 7%.

Continue Reading

Business

DPL lends a hand to children in Monaragala Rubber Farming Communities

Published

on

As part of its ongoing efforts to empower and uplift the livelihood of its farmer co-operative societies, Dipped Products PLC (DPL) distributed school bags to the children of 1,500 smallholder rubber farmers for the 10th consecutive year, under its flagship Firstlight CSR project.

This year’s distribution recorded the largest donation of school bags, which was nearly a two-fold increase from the previous year, bringing the total value of the distribution up to nearly Rs. 1 million.

Taking place at the Pinwatta Bodimalu Viharaya in Medagama, Monaragala, this latest distribution marks the Company’s continued efforts to support the smallholder rubber farming communities, by ensuring that their essential needs are looked after.

“Especially in this time of economic uncertainty, with the nation facing significant challenges and hardships, it is truly touching to see the positive impact which we continue to have on the underprivileged smallholder rubber farming communities. We believe that programmes like Firstlight hold the key to enhancing the livelihoods of our 1500-strong rubber farmers, providing them with an improved quality of life, whilst paving the way to open up new opportunities and a brighter future. This is why, with the enthusiastic response we have received over the years, we have now also expanded this school bag distribution to include the District of Kegalle,” Dipped Products Deputy Managing Director, Pushpika Janadheera said.

 

 

Continue Reading

Trending