NDB Investment Bank raises Rs. 38 b in 2011

NDB Investment Bank (NDBIB), the premier investment bank in Sri Lanka, concluded its most successful year to date, raising approximately Rs. 38 billion funds and retaining its unrivalled position as the market leader in investment banking.

NDB Group Investment Banking Cluster CEO Vajira Kulatilaka commenting on this feat said: “We are proud to have retained our leadership as the dominant force in investment banking in Sri Lanka having successfully met the diverse capital requirements of our valued clients in exploiting the growth prospects of the economy.

” NDBIB raised over Rs. 13 billion through securitisations in 2011. These funds mainly supported the growth of finance and leasing companies, with approximately Rs. 5 billion being raised for finance companies, over Rs. 4 billion for leasing companies and the remainder being raised for agricultural and consumer durable companies.  In the debt arena, a further Rs. 9 billion was raised via debentures, syndications and other debt instruments.  



NDBIB successfully raised funds for its clients from tourism, consumer durables, banking and agricultural sectors in addition to leasing and finance sector, whilst expanding its product portfolio with the introduction of Islamic financing products during the year.

NDBIB raised over Rs. 16 billion in equity capital for 2011. On the Initial Public Offering front, NDBIB managed two landmark IPOs during the year: Union Bank PLC and People’s Leasing Company PLC. The IPO of Union Bank made history on the Colombo Stock Exchange by recording an oversubscription of 345 times, the highest-ever in the history of the Bourse, raising total subscriptions of over Rs. 129  billion.

This IPO was preceded by a private placement which raised Rs. 847 million by way of an innovative tender process. The IPO of People’s Leasing Company, which raised over Rs. 7 billion, was the second largest IPO on the Colombo Bourse, ranking after that of Dialog Axiata PLC; NDBIB acted as the Manager and Financial Advisor to the Dialog IPO Issue.

In addition to its dominance in the debt and equity market, the Corporate Advisory division managed three mergers and acquisitions transactions in 2011 involving companies in the tourism, food and beverage and manufacturing sectors.

Further, NDBIB carried out several corporate restructuring transactions and numerous valuation exercises for both listed and unlisted companies from a diverse range of industries including hotels, manufacturing, plantations, hydropower, etc.

Commenting on this stellar performance, NDB Investment Bank CEO Darshan Perera stated: “We have been able to successfully fortify our service offering by executing landmark transactions in all major areas of expertise, particularly mergers and acquisitions. There is enormous potential in this space and we hope to build on our experience and expertise to continue to play a dominant role in executing major transactions, both debt and equity, that drive our capital markets to greater heights whilst making the economy more efficient.”

In 2011, the company continued to revolutionise the investment banking arena of the country with the signing of a landmark strategic alliance between NDB Group and DBS Bank, Singapore. This alliance, which focuses on investment banking activities, gives NDBIB access to a large base of clients and investors through the global network of DBS.

Emboldened by this new partnership, NDBIB looks forward to a successful year ahead, building upon its strong foundations through the NDB Group and its many astounding successes in 2011.