People’s Bank achieves milestone with Sri Lanka’s largest Rs. 25 b debenture issue

Deputy General Manager - Treasury, International and Investment Shameela Senaratne Loku Kaluge (left) and Assistant General Manager - Investment Trimalie Fernando

People’s Bank has reached a significant milestone with the successful completion of Sri Lanka’s largest debenture issue, mobilising Rs. 25 billion through a Basel III compliant, Tier 2, Unlisted, Rated, Unsecured, Subordinated, and Redeemable Debenture.

 This issuance represents the highest amount raised through a debenture issue in Sri Lanka, across both senior and subordinated instruments, whether listed or unlisted. The debentures were offered with five-year and eight-year tenors.

 In a statement the bank said that the successful completion of this transaction strengthens People’s Bank’s capital base, enhancing the resilience of its balance sheet while supporting sustainable long-term growth. It also reflects the strong confidence placed by investors in People’s Bank as one of Sri Lanka’s most trusted and systemically important financial institutions, particularly at a time when unlisted debt instruments typically face greater market challenges.

 Further reinforcing its leadership in the financial sector, People’s Bank has also made history by becoming the first state-owned bank in Sri Lanka to receive a Corporate Finance Advisor Licence from the Securities and Exchange Commission of Sri Lanka (SEC). This milestone highlights the bank’s expanding capabilities beyond traditional banking and underscores its commitment to innovation, strong governance, and the continued development of Sri Lanka’s capital markets.

 The debenture issue was structured and executed by the People’s Bank Investment Banking Unit (PBIBU), the bank’s in-house investment banking arm, which provided advisory and execution expertise throughout the transaction.

 

Since its establishment, PBIBU has played an important role in the development of Sri Lanka’s capital markets, managing a wide range of debt and equity transactions across sectors including banking, financial services, insurance, plantations, and the public sector.

 

Over the years, the unit has been involved in several landmark transactions, including the inaugural listed debenture of a licensed specialised bank, the first debenture issuance by People’s Bank, the pioneering listed debenture issue for a state-owned enterprise that was the largest debenture issue in Sri Lanka at the time, the first debenture issuance by a listed plantation sector company with a sinking fund, and the largest debenture issuance by a non-banking financial institution. These transactions demonstrate PBIBU’s strong expertise in structuring and placing large-scale capital market instruments.

 

To date, PBIBU has successfully managed 33 debenture listings and one equity Initial Public Offering (IPO), collectively mobilising over Rs. 225 billion, further strengthening the bank’s presence in Sri Lanka’s capital markets.

 

PBIBU is currently structuring two additional debt issuances expected to be launched during the first half of 2026, continuing its contribution to the growth and development of the country’s capital market ecosystem.

 

Further highlighting its growing reputation in investment banking, PBIBU recently received international recognition at the Global Banking and Finance Review Awards 2026, where it was honored with the prestigious title of “Best Investment Bank Sri Lanka”, for the second consecutive year.

 

The award reflects People’s Bank’s commitment to excellence and its ability to adapt to evolving market conditions while maintaining strong governance standards and client-centric values. Through advanced digital capabilities and a robust advisory platform, the bank continues to strengthen its competitive position in Sri Lanka’s investment banking sector.