NDB to issue Rs. 10 bln Debentures
View(s):National Development Bank PLC (NDB) said on Friday it plans to issue upto 100 Million Rated Unsecured Subordinated Redeemable Debentures at a par value of Rs. 100 each, raising a total of upto Rs.10 billion.
In a statement, the bank said the initial issue will be Rs. 5 billion with an option to issue upto a further Rs 3 billion and a further option to issue upto Rs 2 billion. The Debentures will carry tenors of 5 years, 10 years and 12 years.
The Debenture Issue which has been assigned with a rating of “A+ (lka)” by Fitch Ratings Lanka Limited will be listed on the main board of the Colombo Stock Exchange subsequent to obtaining its in-principle approval, the bank statement said.
Rajendra Theagarajah, the Chief Executive Officer of NDB, said the money is being raised to enhance the Tier 2 capital requirements of the bank help stimulate the envisaged growth of NDB during the next 3-5 years. “Further, the medium-long term nature of the Debentures will help us to meet any mismatches in our lending portfolio.”
Whilst the Issue is expected to be opened during the second week of December, the prospectus and application forms would be available to the public, commencing this week.