People’s Bank’s Rs. 10 b debenture snapped up

Friday, 25 October 2024 02:30 - - {{hitsCtrl.values.hits}}

CEO/General Manager Clive Fonseka (left) and Deputy General Manager – Treasury, Investment Banking and Financial Institutions Shameela Senaratne Loku Kaluge

People’s Bank announced yesterday that it has successfully concluded the issuance of its BASEL III Compliant Tier 2, Unlisted, Rated, Unsecured, Subordinated Redeemable Debentures with non-viability write-down, as required by the Central Bank of Sri Lanka (CBSL), raising over Rs. 10 billion last month.

The funds raised will enhance the bank’s Tier 2 Capital base and further strengthen its Total Capital Adequacy Ratio. The subordinated nature and medium to long-term duration of the debentures, issued in compliance with BASEL III requirements, will enable the bank to expand its lending portfolio by further augmenting its regulatory capital buffers.

The bank intends to utilise the proceeds of the issue to expand its loan book through diverse lending products in the ordinary course of business.

“We sincerely thank our prestigious investors for their continued support and the confidence placed in us, which has made each debenture issue a success,” said Deputy General Manager – Treasury Investment Banking and Financial Institutions Shameela Senaratne Loku Kaluge.

Commenting on the successful execution of the debenture issue, People’s Bank CEO/General Manager Clive Fonseka said: “This issuance will elevate the bank’s solvency and capital adequacy levels to an institutional all-time high by year-end, well above the minimum 13.5% stipulated for Domestic Systemically Important Banks in Sri Lanka by the CBSL. The overwhelming response from investors to this debenture issue is a strong indication of their confidence in the bank, which in turn will help us forge ahead with our envisioned growth plans.”

People’s Bank Investment Banking Unit (PBIBU), which acted as the Manager to the Issue, was established as part of the bank’s Treasury to focus on the rapid growth and development of the country’s capital markets (debt and equity). PBIBU offers a full range of services, including financing and advisory services, initial public offerings, debt structuring, fixed income security trading, loan syndications, trustee services, custodian services, and securitisations.