Pan Asia Bank to raise Rs.1.25bn via debenture issue

Pan Asia Banking Corporation PLC has announced plans to raise up to Rs.1.25 billion through a Basel III compliant unlisted debenture issue.

Accordingly, the bank plans to issue 7.5 million Basel III compliant- Tier 2, unlisted, unsecured, subordinated, redeemable debentures at an issue price of Rs.100 each with an option to issue up to a further 5 million of said debentures at the discretion of the bank in the event of an oversubscription of the initial issue with a maximum tenor of five years.

The debenture issue will also have a non-viability conversion clause.

The bank said its director board in a resolution dated January 13, 2020, decided to move forward with the said debenture subject to necessary regulatory and other approvals.

Pan Asia Bank’s capital buffers have been under pressure for some time with increased regulatory capital requirements. 

Dhammika Perera owns 29.99 percent of Pan Asia Bank.