NDBIB concludes private debenture issue for RDB

NDB Investment Bank Limited (NDBIB) successfully concluded the maiden unlisted debenture issue of Regional Development Bank (RDB).

The Issue of 20 million debentures (Rs.2,000 million) was fully subscribed as there was a high demand for the issue, from institutional investors.

RDB issued two types of rated, unsecured, subordinated, redeemable debentures with fixed interest rates payable annually and semi-annually with a five-year tenure. The issuer and the debentures are rated ‘[SL] A-with a stable outlook’ by ICRA Lanka Limited.

Commenting on the transaction, NDBIB Chief Operating Officer Kaushini Laksumanage, “We are extremely proud of the trust RDB has placed in NDBIB to act as the financial advisors and managers to their debenture issue.

We continuously strive to add value to our clients through excellence and innovation by offering bespoke financial solutions.”

NDBIB Vice President Avanthi Dissanayake stated, “NDBIB has been a preferred partner for structuring debt instruments for many state and private entities due to its strong track record of structuring debt instruments that are specifically tailored to each client’s unique requirements. The debt team at NDBIB has best-in-class skills and experience to structure and execute advanced debt structures even under volatile market conditions.” The company proposes to utilize the entire proceeds of the debenture issue to finance the rapid expansion of its lending portfolio.

The lending portfolio of RDB increased at a CAGR of 17 percent over the period 2011-2015 and stood at Rs.87.9 billion as at end-fy 2015.

The lending portfolio of the bank increased YOY by 43 percent in 2015 primarily driven by the growth in disbursements of housing loans, which constituted the largest segment of loans of the bank as at end-fy 2015.

NDBIB is a fully owned subsidiary of NDB Capital Holdings Limited (NCAP), the holding company of the investment banking cluster of National Development Bank PLC.