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| Wednesday, 15 October 2003 |
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Shares to be listed by Jan 2004 : Pan Asia Bank goes for Rs. 250 m Debenture Issue by Ravi Ladduwahetty Pan Asia Bank will go in for a Rs. 250 million Unsecured Redeemable Subordinated Debenture Issue on October 30 which comprises 250,000 Unsecured Redeemable Subordinated Debentures at Rs. 100 each. The issue will close in a month from that date. However, applications could be submitted even prior to opening. The issue will also carry an option of further increasing it to Rs. 400 million with the issue of a further 150,000 debentures. This debenture issue will be the second phase of the bank's recapitulation plan to fuel future growth and calling for the balance Rs. 2 per share from the shareholders which was the first step which has added Rs. 105 million, the Bank's Managing Director/CEO R Nadarajah said. He told a news conference last night that the Rs. 250 million was raised through the debenture for the increase of Capital Adequacy Ratios and expansion of branches where three branches will be set up this year with a further three branches next year, although, he was tightlipped about the locations. There will be a major human resources development program in this context as well, he said. He was fully confident of the issue being oversubscribed even it is not underwritten." The issue will also realise that the Capital Adequacy Ration will rise to over 12 percent. He said that the structured price of Rs. 250 million for the Debenture Issue was sufficient but the option of the extension to Rs. 400 million was kept for the benefit of the shareholders who were keen to invest in the event of an oversubscription. Nadarajah said that the company will also aim to receive a CSE listing by January 2004 and will be featured on the second board of the exchange, he said. The idea of the expansion is to be one of the most preferred banks in Colombo, he said. He said that the asset value of the company has grown by 20 percent. He said that the Non Performing Loans of the company were at around 26 percent which would be subsequently reduced to 20 percent. Investor Dhammika Perera, who is also one of the Directors of the Bank said that he believed that there was scope for expansion of the banking industry. The bank has 13 online branches in the Colombo, Kandy, Gampaha, Ratnapura, Negombo and Ratnapura Districts with a customer base of 25,000 and deposits exceeding Rs. 4 billion. Key shareholders include the Samurdhi Authority, the Kuwait-Bahrain Exchange company (a leading service provider in the Middle East) and Dhammika Perera. |
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