Hirunews Logo
Tuesday, 30 June 2020 - 13:33
Commercial Bank of Ceylon PLC - issue of shares by way of a private placement to International Finance Corporation (IFC)


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.  

Make a Comment
Make a Comment

You may also like :
Hiru News Programme Segments