People’s Bank’s Rs. 20 billion Debenture Issue oversubscribed

People’s Bank’s Rs. 20 billion Debenture Issue oversubscribed

People’s Bank’s BASEL III, Tier 2 compliant, Unlisted, Rated, Unsecured, Subordinated, Redeemable Debenture issue was oversubscribed receiving in excess of Rs. 20 billion worth of bids during the early hours of the opening day itself in a strong expression of investor confidence. This signifies the trust and confidence placed by leading investors on People’s Bank. 

The debenture issue was in three tranches – 100 million, five, eight and ten year subordinated debentures, followed by two other equal tranches of 50 million similar debentures at Rs. 100 each, in the event of an oversubscription of the preceding tranches. Incidentally, this was the largest ever BASEL III, Tier 2 compliant, subordinated debenture issue ever concluded in Sri Lanka up to now. The objective of the issue was to strengthen the Tier 2 capital of the Bank and to expand its loan book via diverse lending products in the ordinary course of business over a period of three to six months based on the current credit demand.   

People’s Bank is a premier financial institution in the country with an unparalleled track record of nearly six decades in driving the country’s socio-economic development through partnering the growth of individuals, businesses and the Government by providing access to finance and safeguarding public interest. People’s Bank accounts for 16% of the Banking industry’s assets and deposits and is thereby the second largest bank in the country. As a fully state-owned, domestic systemically important bank, People’s Bank’s role extends beyond that of mere financial intermediation and its impact on the economic and social fabric of Sri Lanka is unmatched. The Bank is rated AA+ (lka) by Fitch Ratings Lanka Ltd.

People’s Bank has many significant achievements in the fund raising arena both in domestic and foreign markets. The Bank has raised Rs. 30 billion locally by issuing unlisted debentures up to now. Furthermore, People’s Bank managed to secure a US$ 200 million bilateral, eight year facility in 2019 which was one of the largest and longest tenor US$ facilities ever secured by a Sri Lankan commercial bank.     

People’s Bank Investment Banking Unit, which is one of the leading investment banks in Sri Lanka, acted as the Manager to the Issue whilst the Bank’s Legal Department acted as the Legal Advisor to the issue.

Source From asianmirror business
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