CBC Finance debentures entered the Colombo Stock Exchange following a successful Rs. 1.5 billion listing, reinforcing investor appetite for rated corporate debt. The transaction highlights growing confidence in finance companies backed by strong banking groups.
CBC Finance debentures debut on CSE following oversubscribed issue
Sri Lanka’s corporate debt market recorded another notable transaction as CBC Finance Ltd, a subsidiary of Commercial Bank of Ceylon PLC, officially listed its latest debenture issue on the Colombo Stock Exchange. The listing comprises Rs. 1.5 billion worth of five-year debentures carrying a fixed annual interest rate of 11.50 percent, further strengthening the company’s long-term funding base.
According to a statement issued by the Colombo Stock Exchange, CBC Finance successfully raised the full amount on November 27 after its issue of 15 million listed, rated, unsecured, subordinated, redeemable debentures was oversubscribed. The strong demand underscores sustained investor interest in fixed-income instruments issued by finance companies with established parentage and sound governance frameworks.
The CBC Finance debentures were priced at Rs. 100 each and will pay interest annually over a five-year tenure. The instruments have been assigned a credit rating of “BBB+(lka)” by Fitch Ratings Lanka Limited, reflecting the issuer’s credit profile and the support derived from its association with Commercial Bank of Ceylon, Sri Lanka’s largest private-sector bank.
Market participants note that the oversubscription reflects improving sentiment in the domestic capital market, particularly for corporate debt that offers predictable returns amid a volatile macroeconomic environment. As interest rates stabilize and inflation pressures moderate, fixed-rate debentures have regained appeal among investors seeking medium-term yield certainty.
The listing of CBC Finance debentures also contributes to the broader objective of deepening Sri Lanka’s capital markets. By attracting both institutional and retail participation, such issuances expand the pool of investable instruments and enhance market liquidity. This is particularly important as companies seek alternatives to traditional bank borrowing to fund growth and manage balance-sheet maturity profiles.
Commenting on the issue, Sharhan Muhseen, Chairman of CBC Finance and Commercial Bank of Ceylon, said the debenture offering provides investors with an opportunity to participate in the development of the capital market, which he described as a key driver of economic growth. His remarks highlight the strategic role corporate issuers play in strengthening financial market infrastructure beyond their own funding needs.
The Colombo Stock Exchange has also emphasized the diversity of funding instruments available to issuers. Nilupa Perera, Chief Regulatory Officer of the CSE, noted that the exchange supports a wide range of debt products, including Shariah-compliant instruments, green bonds, social bonds, blue bonds, sustainability-linked bonds, perpetual bonds, and high-yield debentures. This broad menu allows companies such as CBC Finance to tailor capital-raising strategies to evolving investor preferences and regulatory priorities.
From a strategic standpoint, the CBC Finance debentures listing aligns with the company’s long-term growth plans. Stable, fixed-rate funding over a five-year horizon enables finance companies to better manage asset-liability mismatches while supporting lending activity across key sectors. As credit demand gradually recovers, access to market-based funding remains an important competitive advantage.
CBC Finance has undergone a significant transformation since its inception. Established in 1987 as Indra Finance Ltd, the company was later renamed Serendib Finance Ltd before being acquired by Commercial Bank of Ceylon in 2014. Since then, it has benefited from the backing, governance standards, and operational expertise of its parent bank, strengthening its market position within Sri Lanka’s non-bank financial sector.
The successful listing also reflects confidence in the regulatory framework governing corporate debt issuance in Sri Lanka. Enhanced disclosure requirements, credit ratings, and exchange oversight have improved transparency, contributing to greater investor trust in listed debenture instruments.
Looking ahead, analysts expect continued activity in the debenture market as finance companies and corporates seek to lock in funding amid evolving interest-rate expectations. The CBC Finance debentures issue serves as a benchmark transaction, demonstrating that well-structured, rated offerings can attract strong demand even in a cautious investment climate.
Overall, the listing represents a positive signal for both CBC Finance and the broader capital market. It reinforces the role of listed debt as a viable funding channel while offering investors access to relatively stable returns backed by a reputable financial group.