Sri Lanka’s NDB Investment Bank records approximately Rs 62 billion in fund raisings
Sri Lanka’s NDB Investment Bank (NDBIB) has reportedly recorded an approximately Rs 62 billion in fund raisings in 2019.
All business segments, namely, equity raisings, debt capital markets and mergers and acquisitions (M&A) had witnessed heightened levels of activity, despite macro-economic headwinds faced during the year, local media reports have stated.
The shift towards equity and M&A transactions boosted fee income for the year whilst NDBIB’s footprint in overseas capital markets, particularly in the Maldives, helped sustain business volumes despite challenging market conditions in Sri Lanka, media reports have noted.
Reports have further stated that NDBIB’s formidable performance included capital raising of approximately Rs. 51.4 billion in debt, Rs. 6.6 billion in equity and hybrid products and transactions valued at approximately Rs. 4 billion via four M&A transactions.
Being crowned the “Best Investment Bank in Sri Lanka” by the prestigious Euromoney Magazine for the eighth consecutive year is another testament to NDBIB’s continued dominance in the investment banking space.
Also, NDBIB had enjoyed continued success in its regional transaction pipeline in 2019 with debt and equity capital raisings for Maldivian clients, which included the Rs 2.9 billion IPO of Maldives Islamic Bank (MIB) and a US$ 12.0 million syndicated revolving loan facility for a large fuel distributor in the Maldives.
The IPO of MIB is the second such transaction managed by NDBIB in the Maldives subsequent to that of Ooredoo Maldives PLC, a subsidiary of the Qatar based global telco. MIB’s IPO was oversubscribed by 1.5 times whilst pricing the shares at a significant premium to its only listed peer. NDBIB remains to date the only investment bank in Sri Lanka to undertake IPOs on foreign soil.
Darshan Perera, CEO of NDBIB, commenting on the 2019 performance has reportedly stated, “Notwithstanding the sluggish macro-economic fundamentals that ensued during the year, we have once again showcased our adeptness across the region and all major segments of capital market activity. A case in point is, our role in the financial services industry, where we have been raising equity, debt, convertibles and involved in a series of M&A transactions.”
Kaushini Laksumanage, Chief Operating Officer of NDBIB has stated, “Our ability to find innovative solutions to meet our clients’ needs has been the main ingredient of our success. We have been raising capital across currencies, fixed and floating rate structures, long tenures and from investors both local and foreign to achieve this result.”
The funds raised by NDBIB is indicative of the strength and growth of Sri Lanka’s private financial sector. Sri Lanka’s geographical positioning in the Indian Ocean, the ease of doing business environment in the country and the many trade agreements as well as trade concessions enjoyed by the country have made it an attractive business destination in the South Asian region. Foreign businesses/investors could therefore confidently explore business/investment opportunities in Sri Lanka.
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