Sri Lanka NDB raises Rs10bn, debenture oversubscribed

COLOMBO (EconomyNext) – Sri Lanka’s National Development Bank said it raised 10 billion rupees with its five-year debentures being oversubscribed during the early hours of the opening day, Wednesday.

The bank offered 75 million unsecured subordinated debentures and exercised an option to issue another 25 million more as it received applications for over 13 billion rupees, a statement said.

“The proceeds of this debenture issue will enhance the Tier 2 capital base of the bank and would enable us in turn to stimulate the envisaged growth of NDB during the next 1-2 years,” Chief Executive of NDB Rajendra Theagarajah said.

The debenture issue had two types; Type A being a “plain vanilla’ coupon paying debenture and Type B being a “Zero Coupon” debenture, the first of its kind to be listed on the CSE, NDB said.

“The majority of Type B debentures were grabbed by provident funds and insurance funds. There was a significant corporate and retail participation for this debenture and total applications received exceeded 13 billion rupees.”

NDB Investment Bank acted as the financial advisors and managers to the debenture issue which was rated A+ (lka) by Fitch Ratings Lanka Limited.

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