HDFC Bank Rs. 4 b debenture issue successfully completed

Housing Development Finance Corporation Bank of Sri Lanka (HDFC Bank) has successfully completed an invitation to the public to subscribe for 30 million Rated Senior Unsecured Redeemable Debentures at a par value of Rs. 100 each with an option to increase such amount by a further 10 million of said debentures.

The bank having received subscriptions for 43,583,100 debentures, for a value of Rs. 4,358,310,000 has decided to exercise the oversubscription option. 

The General Manager/CEO Nimal Mamaduwa commenting on the Debenture Issue stated that the bank is pleased to note the positive response made by individuals and other corporates towards the Debenture Issue, which indicates the investor confidence in HDFC Bank. 

The objective of the recently concluded Debenture Issue was threefold, one, to mobilise/ raise medium to long term funds to manage our assets and liability mismatch and associated liquidity risk; secondly, to finance the medium long-term budgeted lending portfolio and minimise the mismatch in funding exposure and thirdly, to minimise interest rate risk exposure we are faced with.  The HDFC Bank is rated BBB (lka) by Fitch Ratings Lanka Ltd.  The joint Financial Advisors and Managers to the issue were Bank of Ceylon and NDB Investment Bank Ltd.