NDB Investment Bank raises Rs. 30 b from the market in 2007

NDB Investment Bank (NDBIB) continued its pioneering work in the capital market of Sri Lanka. It has structured and executed a number of landmark transactions, revitalising the capital market.

In 2007, NDBIB raised approximately Rs. 30 Billion from the market through equity as well as quasi equity and structured debt instruments offering cost effective fund-raising opportunities to its clientele, the bank said in a release last week.

During the year, NDBIB was instrumental in executing several landmark deals, which included the largest ever Rights and Preference Share Issues, to be executed in the Sri Lankan capital market. NDBIB acted as the Financial Advisor and Manager to the Rs. 15.5 Billion rights issue of Dialog Telekom PLC, which is the largest equity raising in the Colombo Bourse. NDBIB also designed a unique structure for Dialog Telekom PLC to raise Rs. 5 Billion via a private placement of Rated Cumulative Redeemable Preference Shares with the participation of leading local and foreign banks and financial institutions.

This transaction was the largest ever Preference Share issue to take place in Sri Lanka. These transactions were consummated in a difficult environment particularly in the equity market. Some of the other deals handled by NDBIB's Advisory Division during the year included a Diagnostic Study carried out for a leading company in the Power and Energy Sector and several business valuations for its clients in a multitude of sectors such as Plantation, Manufacturing, Food and Beverages, Trading and Financial Services.

NDBIB also structured an Employee Share Option Scheme for a premier bank in Sri Lanka. NDBIB also advised several of its clients on Mergers and Acquisitions and Business Divestments.

In addition, NDBIB functioned as the advisor for a number of leading companies to restructure their balance sheets to accommodate new business plans. Implementation of the recommendations has resulted in upward movement of profitability of the respective companies.

Currently, NDBIB is mandated by several reputed clients to advise and guide them towards obtaining a listing on the Colombo Stock Exchange and raise equity financing via an Initial Public Offering (IPO). NDBIB intends to bring these IPOs spread across diversified sectors of the economy to the Sri Lankan Capital Market in the near future, the statement added.