12 May 2021 08:31 am Views - 436
NDB’s recently concluded rights issue to raise Rs.8 billion in Tier I capital saw keen demand from investors with over 61 million rights changing hands prior to the last rights acceptance date.
The figures provided by SSP Corporate Services Pvt Ltd - registrar to the issue also showed additional rights applications from existing shareholders totaling Rs.763 million.
Prior to the rights issue, in order to accommodate interest shown by Norfund, the shareholders approved the allocation of unsubscribed rights or via a private placement of up to 9.99 percent of total shares in issue post the rights issue and private placement to Norfund.
With the current shareholders snapping up 83 percent of the rights shares on offer, left only 5.29 percent to be offered to Norfund by way of unsubscribed rights, falling well short of the 9.99 percent requested by them.
Accordingly the Board of Directors, pursuant to the agreements with Norfund and shareholder approval in place has decided to offer private placement shares to Norfund at Rs.82.50 per share, such that the Norfund holding reaches 9.99 percent shares in the Bank post the rights Issue and private pacement. In total, the Bank is expected to add Rs.9.5 billion in Tier I capital.
Chairman of NDB Bank PLC, Eshana De Silva, said this successful rights issue shows investors’ confidence on the prospects of the country’s economy and the role NDB will play. “We also look forward to welcoming Norfund as a shareholder,” he said.
Director and Group CEO of NDB Bank PLC, Dimantha Seneviratne, said that the successful rights issue and the expected private placement is a very important milestone for the bank.
“This is a resounding vote of confidence on the performance of the bank by the shareholders and international investors. The bank is now well placed to implement its growth plans at speed. I would like to thank our longstanding shareholders who continue to have faith in the management and the potential the bank has. I note some new shareholders, who have taken a significant stake in the bank, whilst welcoming them; I appreciate their confidence in the Bank and assure them that they have made a good decision. I also look forward to welcoming Norfund to the bank, and to the value they will bring to the bank,” he added.