FINANCIAL CHRONICLE – The Bank of Ceylon, which is state-owned, has announced its intention to secure 10 billion rupees through the issuance of Additional Tier 1 Capital (AT1) debentures that comply with Basel III standards. These debentures will be unlisted, unsecured, subordinated, and perpetual in nature.
As per the bank’s market announcement, the initial offering will comprise up to 50 million ATI Bonds, with the possibility of issuing an additional 50 million bonds at the bank’s discretion should there be an oversubscription of the initial tranche.
The interest for the Bank of Ceylon’s Perpetual Additional Tier 1 Bonds will be based on a floating rate, which is determined by the 12-month Net Treasury Bill rate plus an additional 2.00% per annum.
Investors are required to meet a minimum subscription threshold of 1 million rupees. The bank indicated that the proceeds from this issuance will be utilized to bolster its Tier 1 Capital and improve its capital adequacy ratio. (Colombo/August 19/2026)
