COMBank to raise Rs. 12 b via debenture issue

Monday, 31 July 2023 00:12 - - {{hitsCtrl.values.hits}}

Largest private sector player Commercial Bank has announced plans to raise Rs. 12 billion via listed BASEL III compliant debenture issue.

Commercial Bank Board has resolved to issue 60 million listed, unsecured, rated, redeemable, subordinated, Basel III compliant, Tier 2 debentures of Rs. 100 each amounting to Rs. 6 billion with a non-viability conversion feature, for tenures of 5 years, 7 years and 10 years, with an option to issue up to a further equal amount (Rs. 6 billion) in the event of an oversubscription.

The move comes amidst a downward path in interest rates.

Commercial late last year raised Rs. 10 billion via a similar issuance. Given high rates prevalent then, the issue drew applications requesting for

Rs. 27 billion.