Savings giant NSB has successfully raised Rs. 11.54 billion via an Unlisted Rated Redeemable Senior Debenture issue through private
The debenture issue opened on 15 September and subsequently closed on 23 September, as it was fully subscribed.
The Manager for this debenture issue was the Corporate Finance Division of National Savings Bank and the Trustee services are carried out by NSB Fund Management Company Ltd. The debenture issue has been rated [SL] AAA (Stable) by ICRA Lanka Ltd.
The debentures carry the option of either floating interest rate of six-month AWPLR + 1% p.a. or fixed interest rates at 8.50% p.a. (five years) and 8.75% p.a. (seven years).
NSB said the main objective of the debenture issue was to finance the lending activities of the bank. NSB’s customer base consisting of retail customers, large corporates to Government authorities undertaking infrastructure projects are expected to be the main beneficiaries of the raised funds.
NSB is a premier financial institution of the country. It is the patriarch of the savings movement in Sri Lanka and boasts 100% Government guarantee on its deposits. The bank has been awarded [SL] AAA (Stable) by ICRA Lanka Ltd.
NSB Corporate Finance Division, the managers of the issue, has garnered many prodigious accolades for the bank in the fund-raising arena. It has raised Rs. 26 billion via debenture issues in 2016 and 2019, a perpetual bond issue of Rs. 5 billion in 2020, $ 35 million in foreign loans in 2021 and an unprecedented $ 1 billion through Sovereign Bond Issue in 2013.
With an unparalleled track record of nearly five decades in being the driving force of the country’s economic development and improving the living standards of the community by providing affordable financial solutions, the National Savings Bank considers the raising of Rs. 11.54 billion in the current economic context a landmark achievement for the bank and its officers.