📈 Two Major Sri Lankan Banks to Raise Rs. 30 Bn in Capital Issues This Week

The Colombo Stock Exchange (CSE) has granted in-principle approval for two leading listed banks to tap the domestic debt capital market this week, raising up to Rs. 30 billion in aggregate through Basel III-compliant capital instruments. • Overall Figures: Commercial Bank of Ceylon PLC and Sampath Bank PLC are issuing listed, rated, unsecured, subordinated redeemable instruments featuring non-viability conversion clauses to strengthen their capital bases. • Commercial Bank Issue (Opens 16 July): Aiming to raise up to Rs. 20 Bn (initial tranche of Rs. 10 Bn, with two oversubscription options of Rs. 5 Bn each). Structuring six fixed-rate options across 5-year, 7-year, and 10-year tenors. Offering annual effective interest rates ranging between 13.00% and 13.25%, with annual or semi-annual payout options. • Sampath Bank Green Bond Issue (Opens 17 July): Aiming to raise up to Rs. 10 Bn (initial tranche of Rs. 7 Bn, with a Rs. 3 Bn oversubscription option). Marking a key step in sustainable financing via a Tier 2 Green Bond issue. Offering two fixed-rate options: a 5-year tranche at 13.00% and a 7-year tranche at 13.25%, both paying interest annually. • Market Impact: These massive capital calls reflect ongoing efforts within Sri Lanka's banking & financial services sector to reinforce regulatory capital requirements while offering competitive yields to domestic debt investors.