NDB’s Rs. 5 b debenture issue snapped up

The National Development Bank’s Rs. 5 billion listed debenture issue has been snapped up on its official opening day itself amidst other alternatives in the market. 

The bank issued 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 offered 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.

NDB hopes 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.

Manager to the debenture issue was NDB Investment Bank Ltd.