NDBIB achieves all-time high of Rs. 75 b in capital raisings in 2021

Director/CEO Darshan Perera, Chief Operating Officer Kaushini Laksumanage and Chief Corporate Advisory Officer Nilendra Weerasinghe

NDB Investment Bank (NDBIB) celebrated a record-breaking year of capital raisings in 2021 and stamped its position once again as the market leader for investment banking in Sri Lanka.

NDBIB advised on a record Rs. 75 billion in capital market transactions including nearly Rs. 50 billion via debt capital markets, Rs. 22 billion in public and private equity transactions and a host of M&A transactions valued at Rs. 3 billion. Execution of such transactions through adverse environments such as multiple lockdowns, numerous other pandemic-related hinderances and volatile macro-economic conditions reiterates NDBIB’s dominance and bears further testament to its market leadership.

In a year flooded with public equity offerings after a long hiatus, NDBIB acted as Financial Advisor to a record-breaking five public equity offerings (four IPOs and the only Secondary Public Offering this year) raising nearly Rs. 8 billion, the largest number of transactions amongst Sri Lankan investment banks. Known for its innovation over the years, the same was brought to life in 2021 using tactical placement and distribution strategies to cater to the nuances of each public equity offering resulting in healthy demand being generated from the target investor segments. 

These transactions included the Initial Public Offering of hSenid Business Solutions Ltd. IPO, which witnessed the highest level of oversubscription in recent times of 13.5x and three oversubscribed public equity offerings in the Banks and Diversified Financials sectors despite the challenging macro-economic environment. The IPO of hSenid was also supported by the launch of an Online Application Portal to facilitate seamless online applications by the investing public.

NDBIB was once again acclaimed for its track record of excellence by securing the award for “Sri Lanka’s Best Investment Bank” by Euromoney Magazine for the 10th consecutive year and the award for “Best Corporate and Investment Bank” by the Asiamoney Awards for the fifth consecutive year during the year 2021. NDBIB remains the only investment bank in the country to be recognised by the Euromoney Magazine.

NDBIB also secured Norfund’s first equity investment in the country via a dual tranche offering for its ultimate parent, NDB Bank. The Norwegian Investment Fund for Developing Countries which currently stands as the largest shareholder of the bank holding 9.99%, was part of a mammoth fund raise combining a Rights Issue and a Private Placement amounting to Rs. 9.5 billion under the advice of NDBIB.

Heightened M&A activity saw NDBIB complete transactions across the renewable energy, consumer staples and education sectors during the course of the year. The recently announced signing of an SSPA to divest 100% of the shares of SLT Campus, a fully owned subsidiary of Sri Lanka Telecom, was the 5th M&A deal executed by the team for the year. In addition, a number of ongoing transactions in a range of sectors are also expected to be completed in early 2022.

The historically low interest rate environment in 2021 provided companies the opportunity to raise extraordinary amounts of capital through the thriving debt capital markets in Sri Lanka. NDBIB was responsible for several of the largest debt raises of the year and created opportunities for both the issuers of debt and investors to enjoy exceptional returns via exemplary structuring. These included an Rs. 10 billion listed debenture issue by LOLC Holdings PLC, arranging a $ 35 million facility for National Savings Bank, an Rs. 11.5 billion unlisted debenture issue for National Savings Bank and an Rs. 8 billion listed debenture issue for NDB Bank. It is also noteworthy that each debt raise concluded by NDBIB during the year witnessed healthy oversubscription levels.

NDBIB’s unique position allows it to leverage on the strength of the NDB Group in deal sourcing, participation and facilitation. A case in point are IPO transactions, where NDBIB acts as financial advisor whilst the rest of the group offers underwriting services, cash management, distribution and anchor investments to build a solid order book. NDBIB also expanded its team strength with new recruitments during the year aimed at building on its stellar performance for 2021 and executing a wide variety of transactions that are in the deal pipeline for the year 2022.