NSB raises Rs. 11.54 Bn via Unlisted Rated Redeemable Senior Debentures
National Savings Bank, the premier savings Bank in the country has successfully raised Rs.11.54 Bn via Unlisted Rated Redeemable Senior Debenture issue through private placement.
The debenture issue opened on 15th September and subsequently closed on 23rd September 2021, as it was fully subscribed. The Manager for this debenture issue is the Corporate Finance Division of National Savings Bank 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 6-month AWPLR + 1 % p.a. or fixed interest rates at 8.50% p.a. (5 years) and 8.75% p.a. (7 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 is a premier financial institution of the country.
It is the patriarch of the Savings movement in Sri Lanka and boasts 100% government guarantee on its deposits. The Bank has been awarded [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 Bn via debenture issues in 2016 & 2019, a perpetual bond issue of Rs. 5 Bn in 2020, USD 35 Mn in foreign loans in 2021 and an unprecedented USD 1 Bn through Sovereign Bond Issue in 2013.
With an unparalleled track record of nearly five decades in being the driving force of the country’s economic development and improving the living standards of the community by providing affordable financial solutions, the National Savings Bank considers the raising of Rs. 11.54 Bn in the current economic context a landmark achievement for the Bank and its officers.