Monday Nov 18, 2024
Monday Nov 18, 2024
Saturday, 13 July 2024 00:32 - - {{hitsCtrl.values.hits}}
The Commercial Bank’s mega Rs. 20 billion listed debenture issue had drawn demand worth nearly Rs. 36 billion.
The Bank offered an initial issue of 100 million Basel III Compliant – Tier 2 listed rated unsecured subordinated redeemable debentures with a non-viability conversion feature, at the par value of Rs. 100 each, to raise a sum of Rs. 10 billion, with an option to issue up to a further 50 million debentures, at the discretion of the Bank in the event of an oversubscription of the initial issue, and with a further option to issue up to a further 50 million debentures, at the discretion of the Bank in the event of an oversubscription of the initial issue and the second tranche.
The issue, largest ever by a private bank, had drawn 540 applications requesting for debentures worth Rs. 35.985 billion.
The debenture consisted of five types. Type A Fixed interest rate of Twelve decimal Six Zero per centum (12.60%) p.a. (AER 13.00%) payable semi-annually; Type B Fixed interest rate of Thirteen per centum (13.00%) p.a. (AER 13.00%) payable annually; Type C Fixed interest rate of Twelve decimal Eight Five per centum (12.85%) p.a. (AER 13.26%) payable semi-annually; Type D Fixed interest rate of Thirteen decimal Two Five per centum (13.25%) p.a. (AER 13.25%) payable annually; Type E Fixed interest rate of Thirteen per centum (13.00%) p.a. (AER 13.42%) payable semi-annually and Type F
Fixed interest rate of thirteen decimal Five Zero per centum (13.50%) p.a. (AER 13.50%) payable annually.
The biggest demand was for Type B with Rs. 25 billion demand from 265 applications.
The second was Type F drawing 19 applications worth Rs. 5.746 billion. Type A drew 207 applications worth Rs. 3.822 billion. Type D drew 16 applications wanting Rs. 848 million worth debentures.
The Bank said the issue will further strengthen its Tier 2 capital base, raise funds for the expansion of its lending portfolio, and bridge maturity mismatches in the assets and liabilities portfolio of the Bank.
The Bank said 149,850,000 debentures will be allotted on a preferential basis - being 74.925% of the total issue.
The Balance 50,150,000 debentures of the 200,000,000 Debenture Issue shall be allotted on the following basis.
All those who applied up-to 50,000 debentures will be allotted in full in all types of debentures. The balance will be allotted on a pro-rata basis with 13.75125% of the remaining debentures under each application rounded to the closes 100 debentures.
