The Commercial Bank of Ceylon PLC has successfully completed the largest rights issue ever by a bank in Sri Lanka, raising a substantial Rs. 22.54 billion. This significant capital increase aims to boost the bank’s Tier I and total capital, enabling future business expansion.
The rights issue offered existing holders of ordinary voting and non-voting shares the opportunity to purchase one additional share for every five shares held. The pricing was set at Rs. 85 per ordinary voting share and Rs. 69 per ordinary non-voting share. The Colombo Stock Exchange (CSE) has confirmed that the rights issue was oversubscribed.
In total, the bank received applications for 266,079,848 ordinary voting shares valued at Rs. 22.616 billion and 17,346,959 ordinary non-voting shares valued at Rs. 1.196 billion.
Commercial Bank Chairman Sharhan Muhseen expressed his appreciation for the shareholders’ active participation, stating, “The enthusiastic involvement of our shareholders in raising capital for the Bank’s expansion plans is both exemplary and extremely encouraging. This achievement, particularly during challenging economic times, underscores Commercial Bank’s status as a systemically important bank.”
Managing Director/CEO Sanath Manatunge also commented on the success of the rights issue, saying, “We are deeply gratified by this invaluable vote of confidence from our shareholders. This historic capital infusion will fuel new growth, supporting economic recovery in Sri Lanka and attracting investor interest.”
The funds raised through the rights issue are earmarked for expanding the Bank’s lending portfolio, particularly in sustainable finance and lending to Small and Medium Enterprises (SMEs).
This milestone follows the bank’s Rs. 20 billion debenture issue, which was also the largest ever by a private sector bank in Sri Lanka, marking a period of significant growth for Commercial Bank.