NDB Rs. 10 bln debenture issue oversubscribed
View(s):NDB which had earlier structured and placed the largest Corporate Debenture to be listed on the Colombo Stock Exchange, this week saw another similar sized debenture being successfully oversubscribed and closed on the opening day itself.
The Rated Unsecured Subordinated Redeemable Debentures with a face value of Rs.100 each, amounting to Rs. 10 billion with a 5 year tenure was assigned a rating of ‘A+ (lka)’ by Fitch Ratings Lanka Ltd. The issue was managed by the group’s investment banking arm, NDB Investment Bank (NDBIB) and will be listed on the Colombo Stock Exchange.
“NDB decided to exercise the option to accept further 25 million debentures in addition to the initial issue of 75 million debentures issuing a total of 100 million debentures. The debenture issue had two types; Type A being a “plain vanilla’ coupon paying debenture whilst Type B being a “Zero Coupon” debenture, first of its kind to be listed on the CSE. There was a significant corporate and retail participation for this debenture and total applications received exceeded Rs. 13 billion,” the bank said in a statement.
Commenting on the successful execution of the debenture issue, NDB CEO Rajendra Theagarajah 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.”