LbBIB raises psL RP bn worth funds in PNO3
NDB Investment Bank (NDBIB) raised Rs. 42 billion of funds in 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, CEO of NDBIB, 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 health care, manufacturing, consumer durables and diversified holdings. In the non-banking and nonfinancial sector fund raisings which comprised of 5 listed debenture issues, NDBIB maintained a 100 percent 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.
Kaushini Laksumanage, COO and Head of the Debt Division of NDBIB, 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 securitizations and commercial papers for plantation and leasing companies and further Rs. 200 million and USD 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 (Private) Limited to shareholders of J L 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 Luftansa Technique, a subsidiary of Lufthansa Airlines at the newly constructed Mattala Airport.