NDBIB raises Rs. 5 b in maiden debenture issue for Access Engineering

Monday, 23 November 2015 00:00 -     - {{hitsCtrl.values.hits}}

NDB Investment Bank Ltd. (NDBIB), the premier investment bank in Sri Lanka, acted as the Managers and Financial Advisors to the successfully concluded maiden debenture issue of Access Engineering PLC (AEL). The initial issue was 30 million Rated Senior Unsecured Redeemable debentures at a par value of Rs. 100 each (Rs. 3,000 million) with the option of accepting a further 20 million of the said debentures (Rs. 2,000 million) at the discretion of the Board of Directors of AEL in the event of an over-subscription. 

AEL decided to exercise the oversubscription option and accepted a total of 50 million of the said debentures (Rs. 5,000 million) as the initial issue was oversubscribed. The keen interest in the market for the AEL debentures indicates the positive sentiment towards the company and the construction industry as a whole. 

The debentures are rated [SL] A+ by ICRA Lanka Ltd. with a positive outlook; and are to be listed on the Colombo Stock Exchange. 

AEL would utilise Rs. 2,586 million raised through this issue for the purpose of building Access Towers 2, adjacent to the iconic Access Towers, at Union Place. The proposed new building will consist of 28 floors with premium office space for renting. The balance Rs. 2,414 million will be utilised to design and construct 941 housing units at Henamulla, Colombo 15, under the Urban Regeneration Project of Urban Development Authority. The above project is a part of a larger urban regeneration project aimed at providing permanent houses for the low income families by the Government of Sri Lanka.   This is the second listed debenture issue by a construction company in Sri Lanka, and NDBIB acted as the Managers and Financial Advisors in both these issues. The success of this transaction is a testament to NDBIB’s leadership in the Capital Markets and its expertise in providing financial services to the construction industry in Sri Lanka. It is also noteworthy that the debenture was executed successfully amidst volatile market and macro-economic conditions.   NDB Investment Bank Ltd. is a fully owned subsidiary of NDB Capital Holdings PLC, which is a subsidiary of National Development Bank PLC, providing full-service investment banking services to its diverse clientele.