NDBIB reaps success with full service investment banking

• Group synergies create unmatched service offering to discerning clients

NDB Investment Bank (NDBIB) recorded a successful year during 2014, reaping dividends of the Group’s full-service investment banking model. The unique combination of investment banking, wealth management and stock brokering services together with the newly introduced private equity arm which are all organised under NDB Capital Holdings (NCAP), has enabled NDBIB to maintain market leadership and enhance its service offering in the Sri Lankan capital markets. During the year, NDBIB was amply rec ognised for its superior performance in the Capital Markets having been acclaimed as the ‘Best Investment Bank in Sri Lanka’ by several prestigious financial institutions/magazines including Euromoney, World Finance and International Finance. Commenting on the year’s progress, NCAP CEO Vajira Kulatilaka stated, “2014 stands out as a year where we have been able to demonstrate the power of the full service investment banking model in the country.” Commenting on Group strengths, he further mentioned that “As a Group, we are almost at Rs. 100 billion in assets under management. I believe that the Group can unleash its full potential in the coming years with a compelling service offering and the unique expertise within our teams to the benefit of our valued clients.” The acquisition of Hemas Power (later renamed as Resus Energy) was a case in point where the full service investment banking model was brought to fruition. NDBIB advised the management of Resus Energy in putting together a consortium to acquire the renewable energy assets under the company whilst NCAP participated as an equity partner. Furthermore, NDBIB swiftly arranged requisite debt financing to some of the equity partners in the consortium including the management team. The transaction was successfully closed with smooth execution from the NDB Securities team whilst NDBIB continued advising the client as manager to the ensuing Mandatory Offer. NDBIB CEO Darshan Perera commenting on the progress during 2014 stated, “We managed to raise almost Rs. 25 billion on behalf of our clients during the year through debt, equity and hybrid securities. We also introduced innovative transactions and structures to the market leveraging our expertise and group strengths to add value to our clients.” NDBIB was involved in a landmark cross border loan syndication, together with NDB Capital in Bangladesh, successfully raising approximately USD 50 million from Sri Lankan and Bangladeshi financial institutions. The funds were raised to finance the construction of a 52MW Dual Fuel Power Project in Bangladesh where the project sponsor was Lakdhanavi Limited, the premier company in the power and energy sector in Sri Lanka. NDBIB also ventured in to Islamic Banking through the successful structuring and placing of a Wakala Islamic Banking Facility for a company in the power and energy sector. NDBIB has spearheaded the debt capital markets in Sri Lanka having raised the largest sum of money amounting to approximately Rs. 37 billion since the introduction of tax concessions for debentures listed on the CSE in 2013. Despite subduedmarket conditions in 2014 due to excess liquidity in the market, availability of low cost short term funding and speculation surrounding the low interest rate regime, NDBIB successfully managed four debenture issues for Hemas Holdings PLC, Richard Pieris and Company PLC, Lion Brewery (Ceylon) PLC and Siyapatha Finance Limited. NDBIB also secured further debt financing via a mix of securitisations, long term facilities and commercial paper. NDBIB has continued to play a significant role in Central Bank’s financial sector consolidation plan by engaging in several assignments including acquisitions on the CSE, Rights Issues and advising clients on Mandatory Offers. NDBIB’s ability to provide the entire spectrum of investment banking, right from identifying suitable acquisition targets to execution of share transfers and handling the amalgamation procedure via a seamless multi-phased process has been commended by its clients. The IPO of Alumex PLC, one of the few equity IPO offerings to open for subscription in 2014, was managed by NDBIB. This was one of the most successful IPOs during the year having been oversubscribed on the opening day and continues to trade above its IPO pricing. NDBIB also acted as the financial advisor and manager to the Rights Issue of Sanasa Development Bank PLC raising over Rs. 1 billion. Marking a momentous leap in the capital markets, NDBIB was instrumental in structuring and initiating the launch of Sri Lanka’s largest and first private equity fund with participation from multi-lateral agencies. The ‘Emerald Sri Lanka Fund’, jointly managed by NDB Capital Holdings and Zephyr Management LP, is funded by NDB Capital Holdings, IFC – a member of the World Bank Group, DEG of Germany and FMO – the Netherland’s Development Finance Company. This Fund will be dedicated towards investing in small and mid-sized businesses in the country, empowering them with much needed growth capital for expansion and bridging the funding gap prior to a public listing. NDBIB continued to maintain strong focus on nurturing its key asset, the employees. The company continued to follow its stringent recruitment process complemented by strong focus on on-the-job training and continuous skill development initiatives. These policies have ensured that NDBIB possesses the best and brightest pool of talent within the industry. Furthermore, the corporate culture at NDBIB is driven by the highest ethical standards with honesty and integrity as its hallmarks. It adheres to strict compliance and ethical guidelines, including CFAs code of conduct, an internal policy framework for compliance and industry best practices. NDBIB expects to continue its growth trajectory in 2015 supported by itshighly motivated team, its reputation for the highest ethical standardsand a promising deal pipeline in both debt and equitymarkets. About NDBIB NDB Investment Bank Limited (NDBIB) is a fully owned subsidiary and the Investment banking arm of NDB Capital Holdings PLC, a subsidiary of National Development Bank PLC.