NDB debenture issue is to raise Rs. 5.8 b

Tuesday, 21 July 2020 00:21 - - {{hitsCtrl.values.hits}}

With reference to the Daily FT article yesterday, the National Development Bank (NDB Bank) said the amount planned to raise via its upcoming debenture issue was Rs. 5.8 billion and not Rs. 8 billion as stated.

The bank plans to raise Rs. 5.8 billion via five-year BASEL II compliant, Tier 2 listed, rated, unsecured, subordinated redeemable debentures with a non-viability conversion, with an option to go up to Rs. 6.5 bn.

Initially it is proposed to issue 50 million such debentures at Rs. 100 each and a further 15 million each in the event of oversubscription of original amount as well as a further 15 million upon oversubscription of the earlier amount.

The debenture issue is subject to regulatory and shareholder approval.

NDB last raised Rs. 5.6 billion via a similar debenture in March 2019 this year.