Pan Asia Bank Debenture Issue and Nimal Perera’s comments

October, 3, 2014

The Colombo Stock Exchange (CSE) has approved in principle the application for listing the debt securities of Pan Asia Banking Corporation PLC.

Pan Asia Banking Corporation is to offer 20 million unsecured subordinated redeemable debentures at an issue price of Rs. 100 each with an option to issue up to a further 10 million debentures in the event the initial 20 million debentures are oversubscribed.

The final value of these debentures would be Rs. 03 billion. The subscription list will open on 24 October and the joint managers to the issue are Pan Asia Banking Corporation, People’s Bank Investment Banking Unit and Capital Alliance Partners Limited.

While commenting on this debenture issue, Pan Asia Bank Chairman Nimal Perera told that those who invest in these debentures would gain a 9.75 percent interest and that it would be tax free.

When compared to the prevailing interest rates in the market this is higher, he added.

“We expect to strengthen Pan Asia Bank’s capital through the funds from this debenture issue,” Nimal Perera added further.