MBSL’s Corporate Advisory & Capital Market division proves itself with first IPO and Debenture Issue
Wednesday, 6 May 2015 00:33
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Introducing investment/merchant banking to Sri Lanka, Merchant Bank of Sri Lanka (MBSL) was established in 1982, as a pioneer move to the local capital markets. Since then commenced the revolutionary navigation of MBSL by widening its roots as a leading investment bank to the nation while delivering the fruits of its existence to the upcoming entrepreneurs and business community at large. MBSL is a subsidiary of Bank of Ceylon and has built a strategic alliance with SBI Capital Markets Ltd. of India.
In January 2015 MBSL raised a sum of Rs. 2.5 billion to Pradeshiya Sanwardena Bank (Regional Development Bank) by way of a Debenture Issue, and in March 2015 MBSL raised Rs. 250 million to Singhe Hospital Ltd. by way of an Initial Public Offering of 100 m ordinary shares of the company. MBSL was the Managers and Registrars to the said Share Issue and Debenture Issue.
The IPO of Singhe Hospitals was oversubscribed with key investors investing in the IPO. Situated in the heart of Ratnapura, Singhe Hospital is a BOI approved project that was established in December 2009. The first private hospital established in the Sabaragamuwa Province, Singhe Hospital enjoys a five-year tax holiday and reportedly records 15,000-20,000 patient visits monthly. The IPO received almost 500 applications representing both retailers and high net worth investors.
Regional Development Bank (RDB) raised Rs. 2,500 million through a Debenture Issue to increase the Tier II Capital of RDB. Regional Development Bank is an ‘A’ rated bank by the Lanka Ratings Agency Ltd. The debenture issue was oversubscribed with participation of provident funds and institutional investors forever seeking steady returns to their funds.
The Debentures issued by Regional Development Bank and the Ordinary Shares issued by Singhe Hospitals have been listed on the Colombo Stock Exchange.
The team of MBSL Corporate Advisory & Capital Markets division includes expertise driven from professional experience in the industry. In addition, the team also has been able to successfully complete many Initial Public Offerings to date and has given good returns to all types of investors, be it corporate clients, individuals or even traders. Further, the advisory-based transactions executed have made the clients to adopt suitable practical strategies that in turn, made objectives to realise in an effective manner.
