Thursday 6 April 2017

NDB Investment Bank concludes a private debenture issue

NDB Investment Bank Limited (NDBIB) successfully concluded the maiden unlisted debenture issue of Regional Development Bank (RDB). The Issue of 20 Million debentures (Rs. 2,000 Million) was fully subscribed as there was a high demand for the issue, from Institutional Investors.

An NDBIB press released said - ‘RDB issued two types of Rated Unsecured Subordinated Redeemable Debentures with fixed interest rates payable annually and semi-annually with a tenor of five (5) years. The issuer and the debentures are rated "[SL] A- with a stable outlook" by ICRA Lanka Limited.

‘Commenting on the transaction, Kaushini Laksumanage, Chief Operating Officer of NDBIB, "We are extremely proud of the trust RDB has placed in NDBIB to act as the Financial Advisors and Managers to their Debenture Issue. We continuously strive to add value to our clients through excellence and innovation by offering bespoke financial solutions."

‘Avanthi Dissanayake, Vice President, NDBIB stated "NDBIB has been a preferred partner for structuring debt instruments for many state and private entities due to its strong track record of structuring debt instruments that are specifically tailored to each client’s unique requirements. The debt team at NDBIB has best-in-class skills and experience to structure and execute advanced debt structures even under volatile market conditions"

‘The Company proposes to utilize the entire proceeds of the debenture issue to finance the rapid expansion of its lending portfolio. The lending portfolio of RDB increased at a CAGR of 17% over the period 2011-2015 and stood at Rs. 87.9 Billion as at the end of the FY 2015. The lending portfolio of the Bank increased YoY by 43% in 2015 primarily driven by the growth in disbursements of housing loans which constituted the largest segment of loans of the Bank as at the end of the FY 2015.

‘NDBIB was adjudged as the ‘Best Investment Bank in Sri Lanka’ for the fifth consecutive year at the Awards for Excellence by Euromoney, the world’s premier financial markets magazine in 2016. NDBIB was also adjudged as the "Best Investment Bank in Sri Lanka 2015"by the financial magazine Global Banking and Finance Review. The numerous awards mentioned above bear ample testimony to the continuous quest for excellence and innovation demonstrated by NDBIB within the investment banking sphere in Sri Lanka.

‘NDBIB is a fully owned subsidiary of NDB Capital Holdings Limited (NCAP), the holding company of the investment banking cluster of National Development Bank PLC. NCAP through its subsidiaries provide a wide array of capital market solutions, covering stock brokering, wealth management, and investment banking in both Sri Lanka and Bangladesh.
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