Demand for NDB’s Rs. 10 b debenture issue doubles

Wednesday, 18 December 2013 00:38 - - {{hitsCtrl.values.hits}}

The biggest-ever listed corporate debenture by the National Development Bank (NDB) has drawn unprecedented demand. The bank disclosed yesterday that its issuance of Rs. 10 billion worth of debentures drew 346 applications worth Rs. 21.8 billion, reflecting an oversubscription of two times. NDB made available 50 million rated, unsecured subordinated redeemable debentures of Rs. 100 each with an option to issue a further 30 million debentures and a further option of 20 million debentures. There were four types of debentures. The five year tenure instrument had two options – 13% interest payable semi annually with an annual effective rate of 13.42% and 13.40% interest payable annually with a 13.40% annual effective rate. NDB also had a 10 year debenture with 13.90% interest rate payable annually and a 12 year tenor with 14% payable annually. The biggest demand was for option B of five years with 13.40% annual interest rate which drew 112 applications worth Rs. 7.738 billion. The five year semi-annual interest payment instrument attracted 166 applications worth Rs. 5.63 billion. Option C, of 10 year debentures with 13.90% annual interest rate saw 33 applications worth Rs. 4.84 billion. There were no takers for the 12 year debenture. NDB went for the mega debenture issue to strengthen the Tier II capital base and to maintain the capital adequacy requirements in line with the bank’s future expansion of operations and the asset base. The issue was also aimed at facilitating mobilising/raising medium term funds to match the medium and long term lending of the bank and also help to minimise the interest rate risk and manage the gap exposures of the bank’s assets and liabilities.

Discover Kapruka, the leading online shopping platform in Sri Lanka, where you can conveniently send Gifts and Flowers to your loved ones for any event including Valentine ’s Day. Explore a wide range of popular Shopping Categories on Kapruka, including Toys, Groceries, Electronics, Birthday Cakes, Fruits, Chocolates, Flower Bouquets, Clothing, Watches, Lingerie, Gift Sets and Jewellery. Also if you’re interested in selling with Kapruka, Partner Central by Kapruka is the best solution to start with. Moreover, through Kapruka Global Shop, you can also enjoy the convenience of purchasing products from renowned platforms like Amazon and eBay and have them delivered to Sri Lanka.