Sri Lanka state bank raises Rs4.2bn from bonds

Nov 24, 2008 (LBO) - Sri Lanka's state-run Bank of Ceylon has raised 4.

27 billion rupees from 5-year bonds in fixed and floating rates, issue managers Merchant Bank of Sri Lanka said.

The debenture would be listed on the DEX board of the Colombo Stock Exchange.

Bank of Ceylon has a 'AA(lka)' rating from Fitch.

The subordinated debenture issue had received applications from 1,002 buyers with large subscriptions from pension funds, provident funds and high net worth individuals, MBSL said.

A fixed rate debenture paying 19.

0 percent a year had received 345.

19 million rupees worth applications from 516 individuals and a Treasury bill plus 75 basis point floating rate security had received 3,699.



3 million rupees of applications.

A 5-year deep discount bond that pays 225 rupees on 100 rupees had attracted 227.

79 million rupees worth applications.

The issue is expected to shore up Bank of Ceylon's Tier II capital.

"By improving the capital it allows BOC to attract more revenue based projects and transactions to be seized as and when it appears from the market place," MBSL said in a statement.

Bank of Ceylon went to the market to raise a minimum of three billion rupees. MBSL said all applications would be filled.