Noteworthy crossing by Seylan Bank; Combank announces Rs. 12 billion debenture issue

By Hiran H.Senewiratne

Though it set off on a negative note yesterday CSE trading edged-up during the latter part of the day, stock market analysts said. Three crossings occurred, among which, one by Seylan Bank proved quite noteworthy.

The All Share Price Index went up by 50.96 points and S and P SL20 rose by 36.7 points. Turnover stood at Rs 2.7 billion. Seylan Bank crossed 3.5 million shares to the tune of Rs 164.5 million and its shares traded at Rs 47, Hayleys 450,000 shares crossed for Rs 39.1 million; its shares traded at Rs 87 and Richard Pieris 1 million shares crossed to the tune of Rs 23.7 million; its shares fetched Rs 23.70.

In the retail market top companies that mainly contributed to the turnover were; Expolanka Holdings Rs 382 million (2.6 million shares crossed), JKH Rs 223 million (1.3 million shares traded), Hayleys Fabrics Rs 173.5 million (five million shares traded), Sampath Bank Rs 98.5 million (1.3 million shares traded), Tokyo Cement Rs 92.2 million (1.7 million shares traded) and DFCC Bank Rs 88.4 million (1.1 million shares traded). During the day 91.7 million share volumes changed hands in 24000 transactions.

It is said that prominent private sector player, Commercial Bank, had announced plans to raise Rs. 12 billion via a listed BASEL III compliant debenture issue. Commercial Bank Board has resolved to issue 60 million listed, unsecured, rated, redeemable, subordinated, Basel III compliant, Tier 2 debentures of Rs. 100 each amounting to Rs. 6 billion with a non-viability conversion feature, for tenures of 5 years, 7 years and 10 years, with an option to issue up to a further equal amount (Rs. 6 billion) in the event of an oversubscription.

Commercial Bank late last year raised Rs. 10 billion via a similar issuance. Given high rates prevalent then, the issue drew applications requesting for Rs. 27 billion.

Yesterday the rupee opened at Rs 328.50/329.50 in the spot market, dealers said, while bond yields closed lower.

The rupee closed at 328.00/329.00 to the US dollar in the spot market Thursday. A bond maturing on 15.05.2030 was quoted at 13.90/14.10 percent, down from Friday’s closed at 14.15/30 percent.

A bond maturing on 01.05.2028 was quoted at 14.20/25 percent, down from closing at 14.40/50 percent.