📈 Union Bank to Raise Rs. 3 Bn via Basel III Debenture Issue

Union Bank of Colombo PLC has announced a strategic debenture issue scheduled to open on 10 March 2026, aiming to raise up to Rs. 3 Billion to strengthen its Tier II capital base. • Issue Details The offering consists of Basel III compliant, listed, rated, unsecured, and subordinated redeemable debentures with a 5-year tenure (2026–2031). The instrument is rated BB (lka) by Fitch Ratings. • Investment Structure Investors can choose from three distinct types priced at Rs. 100 per unit: Type A: 13% fixed rate p.a. (paid annually). Type B: 12.5% fixed rate p.a. (paid semi-annually; 12.89% AER). Type C: Floating rate of 182-day T-Bill rate + 400 bps (paid semi-annually). • Capital Allocation The initial issue is for 20 million debentures (Rs. 2 Bn), with an option to issue an additional 10 million (Rs. 1 Bn) at the bank's discretion. Funds are earmarked to bolster capital adequacy and fuel long-term growth initiatives within the banking and financial services sector. • Key Parties The issue is managed by First Capital Advisory Services Ltd as the Managers and Placement Agents.