NDB’s Rs. 5 b debenture issue now open

Tuesday, 28 November 2023 01:12 - - {{hitsCtrl.values.hits}}

National Development Bank PLC’s Rs. 5 billion debenture issue with two interest rate options is now open.

The Bank is issuing 50 million BASEL III compliant Tier 2 listed, rated, unsecured, subordinated, redeemable debentures with a non-viability conversion debentures at Rs. 100 each to raise Rs. 5 billion.

The debenture issue offers two interest rate options. Type A is five year tenor fixed coupon rate of 15% per annum (AER 15%) payable annually and Type B five year tenor fixed coupon rate of 14.22% per annum (AER 15%) payable quarterly.

The official opening of the issue is 5 December but can be subscribed from now on.

Manager to the issue is NDB Investment Bank Ltd.

The Bank proposes to utilise the entirety of the funds raised through this issue to improve and further strengthen the Capital Adequacy Ratio (CAR) in line with the Basel III guidelines and to facilitate future expansion of business activities of the Bank.