Bank of Ceylon 's sixth listed rupee debenture issue which opened on Tuesday was oversubscribed on the same day itself.

The issue opened on 16th was for an initial offering of Rs.4 billion with an option to increase it up to Rs.8 billion in the event of an oversubscription. The subordinated, redeemable, unsecured debentures rated AA by the Fitch Ratings Lanka Ltd are to be listed on the Colombo Stock Exchange in accordance with the provincial approval obtained. The minimum subscription per application was Rs.10,000.00 (or 100 debentures) and application for an amount in excess of the minimum subscription had to be in multiples of Rs.10,000.00 (or 100 debentures). Debentures were offered with 5 year and 8 year maturity periods and four types of fixed and floating interest rates options.The issue was structured and managed by the Investment Banking Division of the bank while Deutsche Bank AG, Colombo Branch is acting as the trustee to the issue.

The issue enables the bank to strengthen long term funding base and to improve its total capital adequacy ratio. The debenture issue was priced considering the high credit worthiness indicated by the issue rating of AA affirmed by Fitch Ratings Lanka Ltd, minimal risk involved in the investment and the strong franchise enjoyed by Bank of Ceylon.