BOC to Raise Up to Rs. 10 Bn via AT1 Bonds 📈

State-owned banking giant Bank of Ceylon (BOC) has opened an unlisted, Basel III-compliant Additional Tier 1 (AT1) bond issue to bolster its financial structure. • Issue Details: Offers an initial Rs. 5 Bn (50 million bonds at Rs. 100 each), with an option to raise up to Rs. 10 Bn in case of oversubscription. Rated ‘AA-‘ (Stable) by Lanka Rating Agency Ltd. • Returns & Maturity: Floating annual rate set at 12-month net T-Bill rate + 2.00% p.a. Bonds are perpetual (no fixed maturity), with a discretion-based call option after 5 years subject to CBSL approval. • Impact on Capital: Designed to enhance Tier 1 capital, manage asset-liability gaps, and expand liquidity. BOC's Capital Adequacy Ratio (CAR)—currently at 17.22% vs 15.00% regulatory minimum—is projected to rise to 17.45% (at Rs. 5 Bn raised) or 17.69% (at Rs. 10 Bn raised). • Investor Eligibility: Issue runs until 31 December 2026 (or until fully subscribed) exclusively for qualified institutional and high-net-worth investors, with a minimum subscription of Rs. 1 Mn (Rs. 50 Mn for individual qualified investors).