NDB Investment Bank successfully concludes Central Finance Rs. 3 b debenture issue

NDB Investment Bank Ltd (NDBIB), the premier investment bank in Sri Lanka, acted as Managers and Financial Advisors to the successfully concluded debenture issue of Rs. 3 billion for Central Finance Company PLC (CFIN). The issue which was oversubscribed within an hour of opening was closed on the same day. 

CFIN decided to exercise the oversubscription option and accept a further 5 million debentures (Rs. 500 million) in addition to the initial issue of 20 million debentures (Rs. 2 billion) as there was an overwhelming demand for the issue. The issue attracted applications for over 77 million debentures (Rs. 7.7 billion), mostly from institutional investors. 

CFIN Director Finance Shamil Peiris commenting on the successful debenture issue stated, “We are encouraged with the level of subscriptions to the debenture issue which demonstrates the continued trust placed by the public in CFIN.”

Central Finance Company PLC issued Rated Secured Redeemable Debentures with tenors ranging from three to five years with interest payable semi-annually and annually as applicable; and is to be listed on the Colombo Stock Exchange. 

CFIN would utilise the funds raised through this issue for the purpose of reducing the mismatch of maturity periods between assets and liabilities, diversifying the funding mix of the company and to fund the growth of the lending portfolio of lease and hire purchase transactions over next six months to capitalise on improving credit demand for vehicle financing.

This is the third successive debenture issue NDBIB managed for CFIN, after successfully raising a total of Rs. 4 billion via its two previous public debenture issuances in year 2013. Further, NDBIB has been successfully raising funds for CFIN over the years through debt instruments such as Securitisations, Unlisted Debentures and Commercial Paper. The repeat business demonstrates client confidence in NDBIB’s capability in successfully placing debentures under challenging market conditions and the professional integrity in maintaining process transparency. 

NDB Investment Bank Ltd is a fully owned subsidiary of NDB Capital Holdings PLC, which is a subsidiary of National Development Bank PLC, providing full-service investment banking services to its diverse clientele.