CDB to raise Rs. 1.1 b via Rights

The Citizens Development Bank (CDB) has announced a 1:4 ordinary voting shares and 1:4 ordinary non-voting shares rights issue at a consideration of Rs.77 per voting share and Rs.64 per non-voting share to raise Rs. 1.1 billion. 

The move will entail issuing 11.6 million ordinary voting shares and 2.9 million ordinary non-voting shares). Net assets value per share at Company level is Rs. 144.87 as at 31 December 2019 and at Group level it is Rs. 147.22, up from Rs. 131.71 and Rs. 133 from 31 March 2018.

The proceeds of the issue are to be utilised to strengthen the Tier I capital of CDB and support its asset growth.

For the nine months of FY19, consolidated post-tax profit of CDB was Rs. 1.1 billion, up by 52% from a year earlier. Total assets as at 31 December 2018 amounted to Rs. 90.4 billion, up from Rs. 76.6 billion as at 31 March 2018.

In December 2018, CDB obtained an unsecured term loan worth $ 25 million from FMO of Netherlands bringing the total funds raised for FY18/19 to $ 60 million from multiple international parties. In January 2019 it raised Rs. 927 million via a listed five year debenture issue.

The Rights Issue is subject to CSE and shareholder approval. 

Ceylinco Life Insurance holds nearly 40% stake in CDB and its public float is 45.73% held by 1,955 voting shareholders. Non-voting public float is 85% held by 1,744 shareholders.