CAPTION: NDB Director/Group CEO Dimantha Seneviratne and NDB Chairman Eshana De Silva
NDB’s recently concluded Rights issue to raise LKR 8Bn in Tier I capital saw keen demand from the investors for the rights with over 61mn Rights changing hands prior to the last rights acceptance date. The figures provided by SSP Corporate Services Pvt Ltd - registrar to the issue - also shows additional rights applications from existing shareholders totaling LKR 763Mn.
Prior to the Rights issue, in order to accommodate interest shown by Norfund (a Norwegian Development Finance Institution which is a leading Development Finance Institution in the global sphere), the shareholders approved the allocation of unsubscribed rights or via a private placement of upto 9.99% of total shares in issue post the rights issue and private placement to Norfund.
With the current shareholders snapping up 83% of the rights shares on offer, left only 5.29% to be offered to Norfund by way of unsubscribed rights, falling well short of the 9.99% 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 LKR 82.50 per share, such that the Norfund holding reaches 9.99% shares in the Bank post the Rights Issue and Private Placement. In total, the Bank is expected to add LKR 9.5Bn 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.”
NDB was crowned as Sri Lanka’s Best Bank 2021 by the prestigious Global Finance Magazine of USA, fresh on the heels of being recognized as The Bank of the Year Sri Lanka, by The Banker Magazine UK. NDB Bank is the 4th largest listed bank in Sri Lanka and the parent company of the NDB Group. The only financial services conglomerate in Sri Lanka, NDB Group is uniquely positioned towards assisting the growth and development of the Sri Lankan capital market to provide its customers seamless access to the product and service offerings of all its group companies.