NDB Bank to raise Rs6.2bn in discounted rights issue

June 19, 2018 (LBO) – Colombo Stock Exchange (CSE) listed National Development Bank (NDB) announced a one for three rights issue to raise approximately Rs6.2bn.

The purpose of the rights issue as stated in the CSE announcement is to: “further strengthen the equity base of the bank and thereby improve capital adequacy, and to part finance the loan portfolio of the bank.”

The price of the issue is Rs105/share, which is a 44% discount to the Rs189 net asset value, and a 20% discount to the Rs132 market price of the shares.

Analysts say there may be a chance for subscribers to recieve over allotments as the rights of shares owned by controversial Perpetual Group companies may not be able to be exercised.

NDB Bank is Chaired by well known senior banker Ananda Atukorala.  Its CEO is recently appointed Dimantha Seneviratne who came over from the CEO position of PABC Bank after the controversial exit of senior banker Rajendra Theagarajah from NDB.