📈 Commercial Bank to Raise Rs. 20 Bn via Debentures & Launch ESOP

Commercial Bank of Ceylon PLC has announced major capital-raising and internal equity plans to strengthen its financial position and align with Basel III requirements. • Debenture Issue Details: The bank aims to raise up to Rs. 20 billion through Basel III-compliant Tier II listed, rated, unsecured, subordinated, redeemable debentures. • Structure: Initial tranche of Rs. 10 billion (100 million debentures), with two optional tranches of Rs. 5 billion each in case of oversubscription. • Maturities: Options of five, seven, and 10 years at a face value of Rs. 100 each. • Key Feature: Includes a non-viability conversion feature as per regulatory standards. • Employee Share Option Plan (ESOP): A new ESOP will be established for the 2026-2028 period to drive employee engagement within the banking & financial services sector. • Equity Dilution: Capped at 3% of ordinary voting shares (up to 46,195,156 shares). • Current Capital: As of Jan 29, 2026, stated capital is ~Rs. 91.65 billion, represented by over 1.5 billion voting shares. • Regulatory Status: Both the debenture issue and ESOP are subject to approvals from the Colombo Stock Exchange (CSE) and shareholders. _Note: Based on official bank disclosure as of February 3, 2026._