Bank of Ceylon (BOC), the largest state-owned licensed commercial bank (LCB) and the market leader in the financial services sector in Sri Lanka, successfully launched a private placement of Basel III Compliant, Rated, Unlisted, Unsecured, Subordinated, Additional Tier I Capital Perpetual Bond issue with Non-Viability Write Down features. The amount to be raised was Rs. 3 billion with an option to issue up to a further Rs. 5 billion in the event of over subscription of the initial issue. This bond issue is approved by the Securities & Exchange Commission of Sri Lanka and Central Bank of Sri Lanka.

Restricted only to qualified investors the bonds are not listed in the CSE. The bonds are subject to the call option at the bank’s discretion at any time after the expiry date of five years from the date of issue subject to the Monetary Board approval and few other conditions.

Bank opines the long-term funds raised by this bond issue to be utilized for lasting financing need fulfilment of priority sector of the economy at the same time the Tier 1 capital of the bank.

In July 2020 Bank of Ceylon introduced a novel debt instrument to the Sri Lankan debt capital market through the Tier 1 capital perpetual bonds with the issuance of Rs. 5 billion Basel III Compliant, Unlisted, Unsecured, Subordinated, Additional Tier I Capital Perpetual Bonds with Non-Viability Write Down features.

BOC in December 2020 raised Rs. 10 billion via a similar Basel III Compliant, Rated, Unlisted, Unsecured, Subordinated, Additional Tier I Capital Perpetual Bond issue with Non-Viability Write Down features.

BOC’s customer base spans across a wide array of public and private sector businesses serviced by the large branch network spread to all corners of the island.  Professional guidance with highly skilled and proficient bank official are ably ready to provide solid and sound guidance of efficient utilization of the funds profitably.

Over eight decades unparallel track record of BOC which is decorated with its dynamic and unblemished presence turned out as the solid driving force of country’s socio- economic landscape development. Bank cherish the stakeholder confidence gained through trusted partnership of growth of individuals as well as businesses and the government by providing access to the finances whilst safeguarding public interest.

The confidence and trust bank has earned over the years among the socio-economic fabric of Sri Lanka extends beyond being a financial intermediary. Fully state-owned bank is rated AA- (lka) by Fitch Ratings Lanka Ltd and (SL) AAA by ICRA Lanka Ltd. 

Among numerous landmark achievements in the fund raising in domestic as well as foreign markets, BOC has raised Rs. 84.21 billion locally by issuing listed and unlisted debentures and US$1 billion through issue of Listed International Bonds in 2012/13 in overseas markets.   

Investment Banking Division of Bank of Ceylon is the managers and registrar for this bond issue.