|Thursday, 27 September 2001|
Commercial Bank's Initial Rs. 500 m Preference Share Issue over subscribed
Commercial Bank, the strongest among quoted private banks in the country, announced last week that the initial issue of the 50 million cumulative redeemable Preference Share Issue was over subscribed within hours of opening and further subscriptions up to Rs. 406 million have been received making up a total subscription of Rs. 906 million at the time of closing on 19th September. The Commercial Bank extends their sincere appreciation to their investors who placed their utmost confidence in the immense success of the bank, and confirm that the entire Rs. 906 million will be accommodated in terms of the prospectus.
Investors ranging from Companies to individuals including pension, provident and other funds would receive a tax adjusted yield equivalent to between 18% and 22.4% from this share, which assures an annual fixed dividend of 13% p.a. Two significant benefits to the investors are, that the bank guarantees redemption in 5 years (in addition to guaranteeing the annual dividend) and that early exit is possible by virtue of being quoted in the Colombo Stock Exchange.
Commercial Bank who has worked towards overall excellence over the past years have earned the SLAA - credit rating for senior debt and SLAA - credit rating for this particular Preference Share, from Fitch Rating Lanka Ltd., the only rating agency in the country. These ratings are the highest received by any bank in Sri Lanka and denote a very low expectation of credit risk, a very strong capacity for timely payment of financial commitments and that the capacity is not significantly vulnerable to foreseeable events.
The honour bestowed by Global Finance for the last three successive years as the "Best Bank in Sri Lanka" also contributes to Commercial Bank being known as the strongest among quoted private banks in Sri Lanka, with the highest capital adequacy which is a yardstick for measuring the stability of the bank. Commercial Bank meets the two most important criteria sought by investors, namely adequate return and safety of funds.
The most recent honour placed upon Commercial Bank was being adjudged Bank of the Year in Sri Lanka, for 2000 by "The Banker" Magazine one of the most prestigious London based publications serving the international banking community. Thus Commercial Bank has certainly proved yet again that they are still by far the Best Bank in Sri Lanka.
Produced by Lake House