Saturday, 11 January 2014 11:42
NDB Investment Bank (NDBIB) raised Rs. 42 billion in funds for 2013 concluding its most successful year to date. During the past four years, NDBIB has raised over Rs. 115 billion through both debt and equity on behalf of its clients, maintaining the undisputed leadership position amongst the investment banks in the country.
Commenting on NDBIB’s performance for 2013, NDBIB CEO Darshan Perera said: “NDBIB has over the years delivered superior performance and remains to be the market leader in the investment banking space. With the encouragement granted by the Government of Sri Lanka towards developing the debt capital market, the main focus was on corporate debentures listed on the CSE where we clearly dominated the market.”
NDBIB through its Debt Capital Markets Division established a stronghold in listed corporate debentures in the past year with over 40% share of the total funds raised via these instruments in a fragmented market. Through the listing of 10 corporate debentures, NDBIB raised over Rs. 29 billion with each of the issues successfully oversubscribing within few hours on the opening day itself.
Funds raised were led by the financial services sector, with approximately Rs. 15 billion being raised for licensed commercial banks and over Rs. 5 billion for finance companies. The balance funds were raised by issuers from the non-banking and non-financial sector such as healthcare, manufacturing, consumer durables and diversified holdings.
In the non-banking and non-financial sector fund raisings which comprised of five listed debenture issues, NDBIB maintained a 100% market share and was able to provide an alternative source of funding via the debt capital market for these corporates. The Rs. 10 billion debenture issue of National Development Bank PLC, which recorded as the largest corporate debenture issue to be listed on the CSE was also the first listed corporate debenture to include multiple green shoe options in the event of oversubscription. The landmark debenture issue of National Development Bank PLC also recorded the highest fund subscriptions raised in a listed corporate debenture issue with over Rs. 21.8 billion being raised within hours.
NDBIB COO and Head of the Debt Division Kaushini Laksumanage, commenting on the record-breaking year said: “The strong performance achieved in 2013 confirms that NDBIB is a dominant force in the Sri Lankan financial markets with a distinctive position in both debt and equity products, meeting the diverse capital requirements of our clients. The innovative and customised solutions offered to our clients in all major areas of expertise have ensured consistent and superior financial results.”
In addition to corporate debentures, NDBIB successfully raised Rs. 9 billion through securitisations and commercial papers for plantation and leasing companies and further Rs. 200 million and $ 26 million via syndications and other debt instruments.
Further, during the year, NDBIB through the Corporate Advisory Division advised on several mergers and acquisitions transactions, and acted as the Manager to the mandatory offer and the voluntary offer made by Hemas Manufacturing Ltd. to shareholders of JL Morison Sons & Jones (Ceylon) PLC.
NDBIB was also the adviser to the national carrier, Sri Lankan Airlines on the proposed setting up of a Maintenance Rehabilitation and Overhaul (MRO) operation with Lufthansa Technique, a subsidiary of Lufthansa Airlines at the newly constructed Mattala Airport.
In a bid to support Sri Lankan entities venturing off-shores, NDBIB together with its sister company in Bangladesh, NDB Capital Ltd., arranged a syndicated loan facility comprising of financial institutions both in Sri Lanka and Bangladesh for Lakdhanavi Ltd., the premier power and energy company in Sri Lanka.
Commenting on the successful fund raising assignment, Perera said: “We are indeed delighted to have associated ourselves with a strong and reputed company like the Lanka Transformer Group in this historic transaction and support them in their quest to achieve greater heights in the field of power and energy outside Sri Lanka especially in Bangladesh.
“Whilst NDB Capital arranged local currency financing in Bangladesh via a consortium of Bangladeshi banks, which subscribed to a convertible security structured by the firm, NDBIB raised approximately Rs. 2 billion in USD financing from two reputed local banks in Sri Lanka.”
Further, NDBIB carried out several corporate restructuring transactions and numerous valuation exercises for both listed and unlisted companies from a diverse range of industries including hotels, trading, manufacturing and hydropower catering to a wide array of needs and aspirations of its valued clientele.
There is an enormous potential in the capital market during year 2014 with the anticipated growth in the global and domestic economy and NDBIB is well poised to take advantage of new opportunities available with the range of diverse and innovative products under its wings. Leveraging on the solid foundation set in 2013 and collaborations with the NDB Group network, NDBIB looks forward to a successful year ahead.
NDBIB is the flagship company within NDB Capital Holdings PLC, the only full service investment bank listed on the CSE, offering a range of services in the areas of stock broking, wealth management, private equity and investment banking both in Sri Lanka as well as Bangladesh.