COMBank goes for Rs. 10 b BASEL III compliant debenture issue

Commercial Bank on Friday announced plans to raise Rs. 10 billion via a BASEL III compliant debenture issue.

It hopes to issue 50 million listed unsecured rated redeemable subordinated BASEL III compliant debentures of Rs. 100 each with a non-viability conversion feature amounting to Rs. 5 billion with an option to issue a further 50 million debentures in the event of an oversubscription. The tenure will be a minimum of five years and a maximum of 10 years. 

The issue is subject to shareholder and regulatory approval.

On Friday Commercial Bank also announced a Second Interim dividend of Rs. 3 per share.