The Commercial Bank of Ceylon PLC has successfully completed the largest rights issue to date by a bank in Sri Lanka, raising Rs 22.54 billion to increase the Tier I and total capital of the Bank to accommodate and facilitate future business growth.
The Bank offered holders of ordinary voting as well as non-voting shares an issue of one equivalent share for every five shares held, at Rs 85 per ordinary voting share and Rs 69 per ordinary non-voting share, and has notified the Colombo Stock Exchange (CSE) that the rights issue has been oversubscribed.
A Bank official said it had received applications for 266,079,848 ordinary voting shares to the value of Rs 22.616 billion, and 17,346,959 ordinary non-voting shares to the value of Rs 1.196 billion at the conclusion of the rights issue.
Commercial Bank Chairman Sharhan Muhseen said, “The active and enthusiastic participation of our shareholders in raising capital for the Bank’s expansion plans is exemplary and extremely encouraging.
“Our ability to raise such a significant amount in capital at a time of economic challenge truly underlines Commercial Bank’s status as a systemically-important bank. I thank all of our shareholders for their role in Commercial Bank’s growth and evolution into a financial powerhouse that our country can be proud of,” he said.
Commercial Bank Managing Director/CEO Sanath Manatunge said, “We are deeply gratified with this invaluable vote of confidence from our shareholders, which has made this history-making rights issue a reality. Our shareholders have always backed the Bank’s aspirations and its vision and mission, and this capital infusion will fuel a new spurt of growth that will support economic recovery in Sri Lanka and stimulate investor interest in the opportunities offered by the Bank.”
He said the entire quantum of funds raised through the rights issue is to be utilised to finance expansion by increasing the lending portfolio of the Bank, including sustainable finance and lending to Small and Medium Enterprises.
Commercial Bank’s record-breaking rights issue came a month after the Bank raised Rs 20 billion via a debenture issue, also the largest ever by a private sector bank in Sri Lanka.
