NSB raises Rs.11.5bn via unlisted debt issue

State-owned National Savings Bank (NSB) has successfully raised Rs.11.54 billion via an unlisted rated redeemable senior debenture issue, through private placement. 

The debenture issue opened on September 15 and subsequently closed on September 23, 2021, as it was fully subscribed. 

The manager for this debenture issue is the Corporate Finance Division of NSB and the trustee services were carried out by NSB Fund Management Company Ltd. The debenture issue has been rated [SL] AAA (Stable) by ICRA Lanka Limited.

The debentures carry the option of either floating interest rate of six-month AWPLR + 1 percent per annum or fixed interest rates at 8.50 percent per annum (five years) and 8.75 percent per annum (seven years).

The main objective of the debenture issue is to finance the lending activities of the bank. NSB’s customer base consisting of retail customers, large corporates to government authorities undertaking infrastructure projects are expected to be the main beneficiaries of the raised funds.

NSB has been rated [SL] AAA (Stable) by ICRA Lanka Limited.

NSB Corporate Finance Division, the managers of the issue, has garnered many prodigious accolades for the bank in the fund-raising arena. It has raised Rs.26 billion via debenture issues in 2016 and 2019, a perpetual bond issue of Rs.5 billion in 2020, US $ 35 million in foreign loans in 2021 and an unprecedented US $ 1 billion through the Sovereign Bond Issue in 2013.