Oct 03, 2012 (LBO) – Sri Lanka’s NDB Bank says there is international investor appetite for bond for large projects in the island, including public private partnerships which are beyond the capacity of domestic financial markets. NDB Bank group, which has an investment banking relationship with Singapore’s DBS has had preliminary investor meetings with foreign investors.
“We got good positive response,” Russell De Mel, NDB Bank’s chief executive said.
De Mel said the group’s investment banking unit and DBS are looking at selling bonds for public and private companies, highways, flyovers and ancillary projects related to port and airport development.
“No bank can give that capital because of the credit squeeze on one side, single borrower limit on the other side,” de Mel said.
“So it has to be long term bonds to fund the projects.”
The partnership with DBS and NDB Investment Bank is already producing joint research through the group’s stockbroking arm, he said.
NDB group has sold out of it an insurance joint venture for 59 million US dollars and is also looking to expand regionally in to countries including Bangladesh, where it already has an investment banking presence.