Fitch Ratings – Singapore/Colombo: Fitch Ratings has assigned Bank of Ceylon’s (BOC) (CC/CCC-/A(lka)/Stable) proposed Basel III-compliant subordinated unsecured debentures of up to Rs.10 billion an expected National Long-Term Rating of ‘BBB+(EXP)(lka)’.
The proposed debentures will mature in five years and be listed on the Colombo Stock Exchange. The bank plans to use the proceeds to strengthen its Tier 2 capital base, bridge maturity mismatches, and to support the expansion of its asset base.
The bank expects the proposed debentures to qualify as Basel III-compliant regulatory Tier 2 capital. The debentures include a non-viability clause whereby the notes will be converted to an Additional Tier 1 (AT1) instrument on a permanent basis, subject to the occurrence of a trigger event, as determined by the Monetary Board of the Central Bank of Sri Lanka.
