Pan Asia Bank’s Rs.3bn debenture issue snapped up on opening day

Pan Asia Banking Corporation PLC said its Rs.3 billion debenture issue opened on October 24, was oversubscribed on the same day.The Bank in a bid to fuel its strong growth momentum and capital requirements issued 20 million unsecured subordinated redeemable debentures at an issue price of Rs.100 each.

To meet excessive demand, the bank utilized the option to issue up to a further 10 million debentures, which could be used in the event of an oversubscription, taking the total number of debentures to 30 million. In this debenture issue, Pan Asia Bank offered two types of 5-year debenture options to investors where investors could receive a yearly interest at 9.75 percent pa. or receive the interest every six months at 9.5233 percent pa (AER 9.75 percent).

“We are seeing growth opportunities in the market and we intend to use these debenture funds to capitalize on those opportunities resulting in profitable growth for the bank. We want to ensure that both shareholders and debenture holders benefit from the bank’s long term growth plans,” Pan Asia Bank director/CEO Dimantha N. Seneviratne said, Lanka Rating Agency had assigned Pan Asia Bank with the BBB+ rating and the debenture is rated investment grade BBB.

The joint managers to the issue were Pan Asia Banking Corporation PLC, Peoples Bank Investment Banking Department, Capital Alliance & Navara Capital Partners while the Trustee was Deutsche Bank.