RDB’s Rs. 2.5 b fund raiser: Investment opportunity in first listed debenture issue for 2015

Friday, 16 January 2015 00:00 - - {{hitsCtrl.values.hits}}

Regional Development Bank (RDB) is planning to raise Rs. 2,500 million through a Debenture Issue to increase the Tier II Capital of RDB with Merchant Bank of Sri Lanka and Finance PLC being the Investment Bankers and Registrars to the issue. Regional Development Bank is an ‘A’ rated bank issued by the Lanka Ratings Agency Ltd. This will continue to provide the tax benefit of no withholding tax and corporate tax for the interest income. The types of investments available are; Regional Development Bank/Pradeshiya Sanwardena Bank can be traced to 1985, when district level banks under the category of Rural Regional Development Banks were established. Later in 1997, seventeen such rural regional development banks were merged into six provincial level banks, which functioned as Rajarata, Ruhuna, Wayamba, Uva, Kandurata and Sabaragamuwa Development Banks. Thereafter, these six banks were merged into one national level bank and designated as the Pradheshiya Sanwardana Bank (RDB). RDB was established under the Pradheshiya Sanwardana Bank Act No.41 of 2008.

Corporate Advisory and Capital Markets division of Merchant Bank of Sri Lanka and Finance PLC is the Investment Bankers and Registrars to the Debenture Issue. Further, this would be first debenture to be launched for the year 2015 for investors to continue the benefit from the tax advantage provided for listed debentures. Introducing Investment/Merchant Banking to Sri Lanka, MBSL was established in 1982 as a pioneer move to the local capital markets. Since then commenced the revolutionary navigation of MBSL by widening its roots as a leading Investment Bank to the Nation while delivering the fruits of its existence to the upcoming entrepreneurs and business community at large. Merchant Bank of Sri Lanka and Finance PLC is a subsidiary of Bank of Ceylon and has built the strategic alliance with SBI Capital Markets Limited of India.