Sri Lanka’s CBC Finance, a subsidiary of Commercial Bank of Ceylon, has listed 1.5 billion rupees in 11.5 percent debentures, according to an announcement by the Colombo Stock Exchange (CSE).
CBC Finance successfully raised 1.5 billion rupees on November 27, following an oversubscription of its issue of 15 million listed, rated, unsecured, subordinated, redeemable debentures, the CSE stated. These debentures carry a five-year tenure with a fixed annual interest rate of 11.50 percent, payable annually. Each debenture was priced at 100 rupees and received a “BBB+(lka)” rating from Fitch Ratings Lanka Limited.
Sharhan Muhseen, Chairman of CBC Finance and Commercial Bank, commented, “Through this debenture issue, we encourage investors to participate in the development of the capital markets, which is a key driver of economic growth.”
Nilupa Perera, Chief Regulatory Officer of the CSE, noted that the Exchange offers a variety of instruments, including Shariah-compliant debt, GSS+ instruments such as green bonds, social bonds, blue bonds, sustainable and sustainability-linked bonds, perpetual bonds, and high-yield debenture bonds. “We hope that CBC Finance Ltd will use the CSE to raise capital through these instruments,” she said.
Established in 1987 as Indra Finance Ltd and later renamed Serendib Finance Ltd, CBC Finance was acquired by Commercial Bank in 2014.
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