Fitch Ratings has assigned Commercial Bank of Ceylon PLC's (COMB, AA (lka)/Rating Watch Negative (RWN)) proposed Sri Lankan rupee denominated Basel III-compliant subordinated debentures of up to LKR10 billion a final National Long-Term Rating of 'A(lka)' on RWN.
The final rating is the same as the expected rating assigned on 15 September 2022 and follows the receipt of documents conforming to information already received.
The debentures, which have maturities of five, seven and 10 years, will be listed on the Colombo Stock Exchange. The bank plans to use the proceeds to strengthen its Tier 2 capital base, reduce maturity mismatches and support loan book growth.
The bank expects the debentures to qualify as Basel III-compliant regulatory Tier 2 capital.
They include a non-viability clause whereby they will convert to ordinary voting shares subject to the occurrence of a trigger event, as determined by the Monetary Board of Sri Lanka. Fitch-Assigns-Commercial-Bank-of-Ceylons-Basel-III-Subordinated-Debt-Final-Alka-Rating_-on-RWN