Pradeshiya Sanwardena Bank Rs. 2.5 b debenture issue oversubscribed
Monday, 26 January 2015 00:13
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The Rs. 2.5 billion listed debenture issue of Pradeshiya Sanwardena Bank (RDB) has been oversubscribed and closed on Friday.
RDB intends to raise funds through this Debenture Issue to increase the Tier II Capital of RDB in order t maintain the Capital Adequacy requirements as stipulated by CBSL. The proceeds of the issue will be utilised for future expansion of RDB in terms of operations and asset base.
The issue offered 25 million unsecured subordinated redeemable five year debentures at Rs. 100 each. Three types of debentures were on offer for the investing public. Type A carried a fixed rate of Nine per centum (9.00%) per annum (before any tax) (Annual Effective Rate of 9.00% on the principal sum); Type B offered a fixed rate of Eight point Eight One percent (8.81%) per annum (before any tax) payable biannually (Annual Effective Rate of 9.00%) and Type C- offered a fixed rate of Eight point Seven One percent (8.71%) per annum (before any Tax) payable quarterly (Annual Effective Rate of 9.00%)
The issue opened on 16 January 2015. By 22 January the issue had drawn applications requesting for 2.498 billion debentures. Final figure of oversubscription and basis of allotment will be announced shortly.
Type A had drawn 12 applications requesting for Rs. 2.137 billion debentures, Type B saw five applications requesting for Rs. 361 million worth of debentures and Type C drew four applications worth Rs. 130,000 worth of debentures.
Managers and Registrars to the Issue were Merchant Bank of Sri Lanka & Finance PLC, Corporate Advisory & Capital Markets Division.
