NDB Investment Bank successfully concludes Siyapatha Finance debenture
Wednesday, 24 December 2014 00:00
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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. 1.0 billion for Siyapatha Finance Ltd. (SFL).
The Issue which was oversubscribed shortly after opening and was closed on the same day. SFL decided to exercise the option to accept a further five million debentures (Rs. 500 million) in addition to the initial issue of five million debentures (Rs. 500 million) as there was a good demand for the issue, mostly from institutional investors.
Siyapatha Finance issued rated unsecured subordinated redeemable debentures with a tenor of five years with interest payable annually; and will be listed on the Colombo Stock Exchange.
SFL proposes to utilise the funds raised through this debenture issue to expand and strengthen the capital base of the company and help maintain the capital adequacy requirements as stipulated by Central Bank of Sri Lanka.
The funds raised would reinforce the company’s Tier II capital and facilitate future expansion of operations and the asset base. It will also allow for the settlement of short term money market loans and restructuring of the balance sheet in order to reduce mismatches in funding exposures. This will minimise interest rate risk arising due to frequent re-pricing cycles.
Gaining access to additional source of funds from non-deposit sources will open up the capital market funding (public listed) for the company and provide access to a wider investor base.
NDBIB has been successfully raising funds for Siyapatha Finance 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.
This is the fourth debenture issue NDBIB has successfully concluded during 2014. NDBIB is the market leader in debenture issues for the Non-Financial Institution category.
NDB Investment Bank 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.
