It has been reported that the board of directors of Commercial Banks of Ceylon PLC has resolved to issue up to 125,000,000 ordinary voting shares of the company at a consideration of LKR 80 per share (total consideration of USD 50mn).
The total holdings of The IFC group has increased to 15% (vs previous 4%) according to the report.
The proceeds will be utilised to raise the tier 1 capital of the bank.
According to the 2019 Annual report of Commercial Bank of Ceylon of the voting shareholders of the Bank, DFCC Bank PLC, (13.54%), Employees’ Provident Fund (9.63%), Insurance Corporation Ltd. (8.83%), Mr Y S H I Silva (8.07%), NTAsian Discovery, Master Fund (5.52%), Melstacorp PLC (4.62%) and the International Finance Corporation (4.44%) are the major shareholders, holding a combined ownership stake of over 56%.
Therefore, IFC would be the largest shareholder with an increase to 15% of the shareholding according to the 2019 list.
Earlier on 8th June the Commercial Bank website reported that IFC, a member of the World Bank Group, is providing a $50 million loan to Commercial Bank of Ceylon (ComBank) to help small and medium businesses in the country to deal with the adverse economic impacts of COVID-19.
The funding was to be used to expand lending to small and medium-sized enterprises, with over a third dedicated to businesses owned by women.
The financing package was part of IFC’s US$8 billion global COVID-19 fast track financing facility, which aims to help companies stay in business and preserve jobs.
This investment was under the Working Capital Solutions Program of the facility, which provides $2 billion in funding to emerging-market banks to extend credit to help businesses shore up their working capital so firms can pay their bills and workers.