NDB Debenture Issue

Gaja · 1 NDB Debenture Issue Wed Nov 13, 2013 8:53 am

Gaja

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http://cse.lk/cmt/upload_cse_announcements/3631384308846_.pdf

Redbulls

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NDB to raise up to Rs. 10 bn. via a debt issue

Sri Lanka’s National Development Bank is planning to raise up to Rs. 10 billion via a debt issue, the Bank announced in a market disclosure.

The Bank says, it will initially issue Rs. 5 billion of listed, rated, unsecured, subordinated, redeemable debentures while keeping an option to go up to Rs. 8 billion and a further option of going up to Rs. 10 billion.
www.news360.lk

worthiness · 3 Re: NDB Debenture Issue Wed Nov 13, 2013 1:45 pm

worthiness

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Debt-Equity ratio becomes higher. Some investors' point of view, high leverage with debt servicing cost on maturity of the instruments, tend to be a risky the nature of country's banking sector concerned. What would be the effect on the share price?

sriranga · 4 03-Dec-2013 National Developmnt Bank Debenture Issue Tue Dec 03, 2013 10:29 am

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http://www.cse.lk/cmt/upload_cse_announcements/511386043592_.pdf

sriranga · 5 Fitch Rates NDB's Subordinated Debt Final 'A+(lka)' Tue Dec 03, 2013 10:33 am

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Fitch Ratings-Colombo/Hong Kong-27 November 2013: Fitch Ratings Lanka has assigned National Development Bank PLC's (NDB; AA-(lka)/Stable) proposed subordinated debentures of up to LKR10bn a final National Long-Term Rating of 'A+(lka)'. The debentures will be issued in three tranches with maturity of five, 10 and 12 years while coupon payments will be at fixed rates.

The assignment of the final rating follows the receipt of final documents, which conform to information previously received. The final rating is at the same as the expected rating assigned on 18 November 2013.

KEY RATING DRIVERS
The proposed debentures are rated one notch below NDB's National Long-Term Rating to reflect their below-average recovery prospect relative to senior unsecured debt in the event of liquidation, in line with Fitch's criteria for rating such securities.

RATING SENSITIVITIES
The subordinated debt rating will move in tandem with NDB's National Long-Term Rating.
A solid track record in developing and maintaining a commercial banking franchise with commensurate credit metrics could result in an upgrade of NDB's ratings while a sustained and substantial weakening in asset quality, in capitalisation and in provision coverage could result in a downgrade.
http://fitchratings.lk/

sriranga · 6 Press Release - National Development Bank PLC Tue Dec 03, 2013 11:00 am

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NDB to issue LKR 10 Billion Debentures

National Development Bank PLC intends to issue upto 100 Million Rated Unsecured Subordinated Redeemable Debentures at a par value of LKR 100 each raising a total of upto LKR 10 Billion (with the initial issue being LKR 5 Billion and an option to issue further LKR 3 Billion and a further option to issue LKR 2 Billion). The debentures will carry tenors of 5 years, 10 years and 12 years.

The debenture issue which has been assigned with a rating of “A+ (lka)” by Fitch Ratings Lanka Limited will be listed on the main board of the Colombo Stock Exchange subsequent to obtaining its in-principle approval.

Mr. Rajendra Theagarajah, the Chief Executive Officer of NDB commenting on the debenture issue stated that “The proceeds of this debenture issue will enhance the Tier 2 capital requirements of the Bank and would enable us in turn to stimulate the envisaged growth of NDB during the next 3-5 years. Further, the medium-long term nature of the debentures will help us to meet any mismatches in our lending portfolio.”

According to the Financial Advisors and Managers to the Issue, NDB Investment Bank Limited (NDBIB), the proposed NDB debenture issue is expected to be opened during the second week of December and the prospectus and application forms would be available to the public, commencing this week.

NDB is one of the fastest growing banks in the country with NDB Group having regional operations in Maldives and Bangladesh. The Bank offers a wide range of commercial banking services through its growing island-wide branch network, catering to an increasing customer base from all walks of life. Through the combined synergies of the diverse constituents of the NDB Group, its customers have access to a full range of banking and financial services; including project finance, corporate banking, SME lending, retail banking, investment banking, stock brokering and wealth management solutions making NDB a truly Universal Bank.
http://www.ndbbank.com/pages/english/dwnlds/news/ndb_to_issue_debentures.pdf