NDB Investment Bank raises over Rs 8 billion in first half

NDB Investment Bank (NDBIB) spearheaded its operations in the capital market by raising over Rs 8 billion during the first half of 2010.

NDBIB's Debt Unit achieved this land mark performance by raising funds through a diversified range of debt instruments. NDBIB being the unprecedented market leader in securitisations, a product pioneered by the company, raised over Rs 4 billion from securitisations while the remaining funds were raised through a mix of debentures, structured loans and commercial papers.

Among these were the fund raising of over Rs 2 billion to People's Leasing Company Limited, Rs 1.2 billion to Ceylon Theatres Group, Rs 1.06 billion to Commercial Leasing Company Rs 1 billion to Singer (Sri Lanka), Rs 850 million to LB Finance PLC and Rs 225 million to Richard Peiris Group.

NDBIB relies on its extended investor base consisting of both conventional and unconventional investors to provide cost effective funding for its clientele.

According to NDBIB, the dip in interest rates witnessed during the year saw many investors seek out attractive interest rates which paved the way for the placement of these investments. NDBIB's strong position in the area of Securitisations is further highlighted as they have been the structuring and placement agent for the largest securitisation transactions to take place in Sri Lanka in a multitude of industries.

According to the Trustees, the Rs 1.055 billion securitisation carried out by NDBIB for People's Leasing Company Limited during the first half of the year is the largest ever Lease and Hire Purchase securitisation in the country.

They went on to add that the Rs 1.43 billion securitisation carried out by NDBIB for the Ceylon Electricity Board is the first Utility Securitisation to take place in the country and is also the largest securitisation the Sri Lankan capital market has witnessed to date.

The Corporate Advisory Division of NDBIB too had a successful year to date having just concluded the Initial Public Offering of PC House Limited.

NDBIB is confident of maintaining its market leadership position in the capital market during the coming months with the expectation of the continuation of the low interest rate regime and the improved positive sentiment from both local and international investors towards Sri Lanka.