People’s Bank IBU manages HDFC’s debenture issue with huge success
Monday, 28 October 2013 01:10
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The People’s Bank Investment Banking Unit, which acted as the Coordinating Arranger and Manager, successfully concluded the Rs. 2 billion listed debenture issue of HDFC Bank of Sri Lanka. Total bids received amounted to 200% of the offered amount and the issue closed at the end of the issue opening day itself, reflecting high investor confidence in the bank and also serves to enhance the success story of this leading mortgage lender.
The listed, secured, redeemable and rated debenture issue was assigned a BBB (stable) rating by RAM Ratings and was managed by the People’s Bank’s Investment Banking Unit. The other parties to the issue were trustees Deutsche Bank AG, Colombo, lawyers Nithya Partners, Registrars SSP Corporate Services Ltd., bankers People’s Bank and auditors Auditor General’s Department.
52 years experience
With more than 52 years of banking experience, People’s Bank initiated investment banking activities in 2011 with the objective of expanding its footprint to investment banking activities to harness the opportunities arising from the rapid development of the post war economy and to increase its offering to its corporate client base.
The Investment Banking Unit (IBU) consolidated its debt structuring activities and raised more than Rs. 8 billion in 2012, via asset backed notes and commercial papers. The IBU has gained a significant market share in this space and has executed a number of corporate debt issues for a number of corporates.
Going forward, the IBU plans to capitalise on the favourable environment present for corporate debt activities, especially with the new tax incentives offered for listed corporate debt and the capital market development initiated by the SEC and CSE.
Vast footprint
HDFC Bank, a BBB+(lka) by Fitch rating and a BBB (stable) by RAM Rating was incorporated as a licensed specialised bank under the provisions of the Housing Development Finance Corporation Act No. 07 of 1997, amended by Act No. 15 of 2003 and No. 45 of 2011.
It is listed on the Colombo Stock Exchange and has been in the housing finance business since 1984, by pioneering the housing loan sector in Sri Lanka making “Housing dream” a reality for the common man.
With a housing loans portfolio exceeding Rs. 15 billion and an asset base of more than Rs. 20.8 billion, HDFC bank has its foot print spread across the country with a branch network of 32,360 ATMs and 120 mobile bankers as customer access points.
