NDB Rights Issue Fully Allocated
NDB’s recently concluded rights issue to raise Rs 8 billion in Tier I capital saw keen demand from the investors for the rights, with over 61 million 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 totalling Rs 763 million.
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 up to 9.99 per cent of total shares in issue post the rights issue and private placement to Norfund.
With the current shareholders snapping up 83 per cent of the rights shares on offer, left only 5.29 per cent to be offered to Norfund by way of unsubscribed rights, falling well short of the 9.99 per cent 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 Rs 82.50 per share, such that the Norfund holding reaches 9.99 per cent shares in the Bank post the rights issue and private placement.
In total, the Bank is expected to add Rs 9.5 billion in Tier I capital. Chairman of NDB Bank PLC, Eshana De Silva, said this successful rights issue shows investor confidence in 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 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.”