People’s Bank has successfully concluded the BASEL III Compliant Tier 2, Unlisted, Rated, Unsecured, Subordinated Redeemable Debentures with non-viability write down to the extent required by the Central Bank of Sri Lanka (CBSL) by raising more than Rs. 10 billion last month.

The sum raised by way of the debenture will enhance the bank’s Tier 2 Capital base and further boost the Bank’s strong Total Capital Adequacy ratio. The subordinated nature and medium to long term duration of the Debentures issued in compliance with requirements under BASEL III would enable the Bank to expand its lending portfolio by way of enabling the bank to further augment its regulatory capital buffers from its current levels.

Bank intends to utilize the proceeds of the Issue to expand Bank’s loan book via diverse lending products in the ordinary course of business.

“We sincerely thank our prestigious investors who have been with us and for the confidence placed in us to make each debenture issue a success” added Shameela Senaratne Loku Kaluge, Deputy General Manager - Treasury, Investment Banking and Financial Institutions.

Commenting on the successful execution of the Debenture Issue, Clive Fonseka - Chief Executive Officer/General Manager of People’s Bank said ”The issuance will help to take the bank’s solvency/ capital adequacy level to an Institutional all time high by year end, well above the minimum 13.5 percent stipulated for the Domestic Systemically Important Banks in Sri Lanka by the CBSL. The overwhelming response we received from investors for this debenture issue is a strong indication of the confidence they have in the bank which in turn helps us forge ahead with the envisioned growth plans.”

People’s Bank Investment Banking Unit (PBIBU) acted as the Managers to the Issue, the Unit which was established as a part of the bank’s Treasury, to focus on the fast growth and development of the country and its capital markets (debt and equity). PBIBU offers a full range of services including financing and advisory services, initial public offerings, debt structuring, fixed income security trading, loan syndications, trustee services, custodian services and securitisations.