Sri Lanka, April 8 -- Fitch Ratings has assigned Commercial Bank of Ceylon PLC's (COMB; AA-(lka)/Stable) proposed Sri Lankan rupee-denominated Basel III-compliant subordinated green bonds of up to LKR15 billion an expected National Long-Term Rating of 'A(EXP)(lka)'.
The proposed bonds, which will mature in five, seven and ten years, will be listed on the Colombo Stock Exchange. The bank plans to use the proceeds to strengthen its Tier 2 capital base as well as to expand the bank's green lending portfolio.
The bank expects the proposed bonds to qualify as Basel III-compliant regulatory Tier 2 capital. The debentures include a non-viability clause that states they will convert to ordinary voting shares upon the occurrence of a trigger event...