Pan Asia gears up for Rs. 100 bn asset base
View(s):Following the completion of the Pan Asia Banking Corporation PLC’s (Pan Asia Bank) Rs. 4 billion debenture issue that was oversubscribed exceeding Rs.
5.5 billion, the bank is now gearing up for a higher growth trajectory aiming to achieve a Rs. 100 billion asset base, a Pan Asia Bank Media release said.
“This is the second such debenture the bank issued in a span of 12-months.
Its Rs. 3 billion subordinated debenture issue in October 2014 was also oversubscribed on the opening day itself,” the release added.
Pan Asia Bank’s Director and CEO, Dimantha Seneviratne attributed the success of the issue to the confidence placed on the bank and its improved performance by the investors. “I believe it was a strong endorsement received from the wider investment community on the bank’s direction and the recent performance,” Mr. Seneviratne was quoted as saying in the release.
The bank’s debenture was the first such listed corporate debt issuance in two months and its offered an opportunity for the individual investors as well as large corporate institutions to lock-in their funds.
“The bank’s management took a bold decision to go ahead with the debenture at a time when there was uncertainty about the movement in interest rates and we are confident that we made the right decision. We will lock in these funds soon to ensure any downside risks are mitigated,” Mr. Seneviratne was quoted as saying.
The bank will utilise these funds to grow its retail, SME and corporate loan books as the bank wants a balanced, sustainable and a quality growth in its asset base, according to the release. “The funds will also be utilized to stabilize our earnings stream and improve stock of liquid assets and government securities,” Mr. Seneviratne has said.
In early September, the bank received US$ 10 million re-financing line from the Europe based green financier, the Global Climate Partnership Fund (GCPF) to fund small to large scale renewable energy and energy efficiency projects, which marks the completion of the US$ 20 million re-financing facility with the GCPF which began in 2013.