Monday, 2 December 2013 00:00
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National Development Bank PLC intends to issue up to 100 million rated unsecured subordinated redeemable debentures at a par value of Rs. 100 each, raising a total of upto Rs. 10 billion (with the initial issue being Rs. 5 billion and an option to issue further Rs. 3 billion and a further option to issue Rs. 2 billion). The debentures will carry tenors of five years, 10 years and 12 years.
The debenture issue which has been assigned with a rating of “A+ (lka)” by Fitch Ratings Lanka Ltd. will be listed on the main board of the Colombo Stock Exchange subsequent to obtaining its in-principle approval.
NDB Chief Executive Officer Rajendra Theagarajah commenting on the debenture issue stated: “The proceeds of this debenture issue will enhance the Tier 2 capital requirements of the bank and would enable us in turn to stimulate the envisaged growth of NDB during the next three to five years. Further, the medium-long term nature of the debentures will help us to meet any mismatches in our lending portfolio.”
According to the financial advisors and managers to the issue, NDB Investment Bank Ltd. (NDBIB), the proposed NDB debenture issue is expected to be opened during the second week of December and the prospectus and application forms will be available to the public, commencing this week.
NDB is one of the fastest growing banks in the country with NDB Group having regional operations in Maldives and Bangladesh. The bank offers a wide range of commercial banking services through its growing island-wide branch network, catering to an increasing customer base from all walks of life.
Through the combined synergies of the diverse constituents of the NDB Group, its customers have access to a full range of banking and financial services; including project finance, corporate banking, SME lending, retail banking, investment banking, stock brokering and wealth management solutions making NDB a truly ‘Universal Bank’.
