Pan Asia Bank Rs. 3 b debenture issue oversubscribed

Monday, 27 October 2014 00:00 - - {{hitsCtrl.values.hits}}

Pan Asia Banking Corporation PLC announced that its Rs. 3 billion debenture issue which was opened on 24 October was oversubscribed on the same day.

Pan Asia Bank, one of the fastest growing local banks in the country, in a bid to fuel its strong growth momentum and capital requirements issued 20,000,000 unsecured subordinated redeemable debentures at an issue price of Rs. 100 each. In order to meet the excessive demand, the bank utilised the option to issue up to a further 10,000,000 debentures which could be used in the event of an oversubscription, taking the total number of debentures to 30,000,000. The issue was opened on 24 October and was closed on the same day itself as the bank had received applications exceeding Rs. 3 billion. In this debenture issue, Pan Asia Bank offered two types of five year debenture options to investors where investors could receive a yearly interest at 9.75% pa. or receive the interest every six months at 9.5233% pa (AER 9.75%). Speaking on their debenture issue, Pan Asia Bank Director and Chief Executive Officer Dimantha N. Seneviratne said, “We are seeing growth opportunities in the market and we intend to use these debenture funds to capitalise on those opportunities resulting in profitable growth for the bank. We want to ensure that both shareholders and debenture holders benefit from the bank’s long term growth plans.”

The Lanka Rating Agency had assigned Pan Asia Bank with the BBB+ rating and the debenture is rated investment grade BBB. The joint managers to the issue were Pan Asia Banking Corporation PLC, Peoples Bank Investment Banking Department, Capital Alliance & Navara Capital Partners while the Trustee is Deutsche Bank. Commenting on the overwhelming response received to the debenture issue, Seneviratne said “We are honoured and humbled by the way investors have responded to this offer and it is truly an indication that Pan Asia Bank is on a strong growth momentum. In addition to thanking all the investors who placed their confidence in the bank’s future growth prospects we also would like to thank the managers to the issue, People’s Bank Investment Banking Unit, Capital Alliance Partners Ltd. and Navara Capital Partners Ltd.”