NDB to raise Rs. 6.5 b via debentures

Wednesday, 9 September 2020 00:00 - - {{hitsCtrl.values.hits}}

National Development Bank (NDB) is to raise Rs. 6.5 billion via a listed debenture issue.

The Bank plans to use the proceeds from the proposed debentures to strengthen its Tier 2 capital base and support loan-book expansion.

The Colombo Stock Exchange has approved in principle an application by NDB to list BASEL III compliant 50 million Tier 2, rated, unsecured, subordinated redeemable debentures with a non-viability conversion at Rs. 100 each. The issue will have an option to offer 15 million more debentures in the event of the oversubscription of the initial amount.

The issue will open on 17 September but can be subscribed from 10 September onwards.

Fitch Ratings Lanka has assigned National Development Bank PLC’s (NDB, A+(lka)/Stable) proposed Basel III-compliant subordinated unsecured debentures a final National Long-Term Rating of ‘A-(lka)’.

Managers to the issue are NDB Investment Bank Ltd., and registrars are S.S.P. Corporate Services.