The Bank of Ceylon’s (BOC) 5 year rupee debenture issue which closed on June 21 had a total of 168 applications with the amount subscribed at Rs.5.77 billion.
The BOC informed the Colombo Stock Exchange (CSE) this week that the basis of the allocation will be notified. The debenture was offered through the CSE for Rs.3 billion but was oversubscribed by June 16 which prompted the BOC to keep it open for a further subscription of Rs.2 billion.
According to the prospectus, the BOC’s issue of 30 million unsecured subordinated redeemable 5 year debentures was issued at a price of Rs.100 each and opened on 1 June 2010. It was listed on the main board of the Debt Securities Trading System of the CSE. The minimum subscription per application was set at Rs.10,000 or 100 debentures.
There were two types of debentures listed, the first being an 5 year debenture bearing interest at a fixed rate of 11.5% per annum on the principal sum payable annually at the expiry of every one year period from the date of the allotment of the debentures.
The second was a 5 year debenture bearing interest on the principal sum at a floating rate, payable bi-annually at the expiry of every six month period from the date of the allotment of the debentures. The floating rate of interest is equivalent to 0.75% above the weighted average six month treasury bill interest rate.