Commercial Bank announces mega Rs. 20 b debenture issue

Commercial Bank has announced a fresh issuance of Rs. 20 billion worth of listed debentures following Board approval yesterday.

It has decided to issue 100,000,000 Basel III compliant - Tier 2 Listed Rated Unsecured Subordinated Redeemable Debentures with a Non-Viability Conversion feature of Rs. 100 each amounting to Rs. 10 billion for tenures of 5 years, 7 years and 10 years, with an option to issue up to a further 50 million debentures worth Rs. 5 billion 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 Rs. 5 billion at the discretion of the Bank, in the event of an over-subscription of the initial issue and the second tranche. In December Commercial Bank successfully raised Rs. 6 billion via a listed debenture.  Rs. 6 billon debenture with an option to issuance of a further Rs. 6 billion (totalling Rs. 12 billion) saw 486 applications requesting for Rs. 16.1 billion worth of debentures. The issue had five types of debentures ranging from a tenure of 5 years and 10 years with fixed coupon payable semi and annually with return of 13.75% and 15%