Wednesday, 29 October 2014 00:15
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Pan Asia Banking Corporation Plc (PABC) has attracted Rs. 3.64 billion worth of demand for its Rs. 3 billion debenture issue.
The bank announced that total demand was 106 applications for 36.3969 million debentures priced at Rs. 100 each. The issue was for 20 million rated unsecured subordinated redeemable debentures with an option to issue a further 10 million in the event of an oversubscription.
It was oversubscribed and closed on its official opening day of 24 October.
PABC offered two types of debentures and Type A (a yearly interest rate at 9.75% per annum) received 52 applications requesting for 22.4 million debentures worth Rs. 2.24 billion. Of that, the bulk of the applications (49) had been with payment by cheques and RTGS. Type B (interest every six months at 9.5233% per annum - AER 9.75%) had drawn 54 applications requesting for Rs. 1.4 billion worth of debentures. For that applications with payment via cheques and RTGS were 52.
The debenture issue was to raise funds in a bid to fuel its strong growth momentum and capital requirements.
The Lanka Rating Agency had assigned Pan Asia Bank with the BBB+ rating and the debenture is rated investment grade BBB. The joint managers to the issue were Pan Asia Banking Corporation Plc, Peoples Bank Investment Banking Department, Capital Alliance and Navara Capital Partners while the Trustee was Deutsche Bank.
