People’s Bank’s Rs. 20 billion Debenture Issue oversubscribed

People’s Bank’s BASEL III, Tier 2 compliant, Unlisted, Rated, Unsecured, Subordinated, Redeemable Debenture issue was oversubscribed receiving in excess of Rs. 20 billion worth of bids during the early hours of the opening day itself in a strong expression of investor confidence, the bank said in a media statement on Monday.

The debenture issue was in three tranches – 100 million, five, eight and ten year subordinated debentures, followed by two other equal tranches of 50 million similar debentures at Rs. 100 each, in the event of an oversubscription of the preceding tranches. 
Incidentally, this was the largest ever BASEL III, Tier 2 compliant, subordinated debenture issue ever concluded in Sri Lanka up to now. The objective of the issue was to strengthen the Tier 2 capital of the bank and to expand its loan book via diverse lending products in the ordinary course of business over a period of three to six months based on the current credit demand.    

People’s Bank is a premier financial institution in the country with an unparalleled track record of nearly six decades in driving the country’s socio-economic development through partnering the growth of individuals, businesses and the Government by providing access to finance and safeguarding public interest. People’s Bank accounts for 16% of the Banking industry’s assets and deposits and is thereby the second largest bank in the country.