MBSL in successful debenture and IP issues
In January, the Merchant Bank of Sri Lanka (MBSL) raised Rs. 2.5
billion for the Regional Development Bank through a debenture issue, and
in March, MBSL raised Rs.250 million for Singhe Hospital Limited through
an Initial Public Offering of 100 million ordinary shares of the
MBSL was the Manager and Registrar to the share and debenture issue.
The IPO of Singhe Hospitals was oversubscribed with key investors
investing in the IPO. Singhe Hospital is a BOI-approved project set up
in December 2009 in the heart of Ratnapura. The first private hospital
in the Sabaragamuwa Province, Singhe Hospital has a five-year tax
holiday and reportedly records 15,000-20,000 patient visits monthly.
The IPO received almost 500 applications representing retailers and
high net-worth investors. The Regional Development Bank (RDB) raised Rs.
2,500 million through a debenture issue to increase the Tier II Capital
The Regional Development Bank has been assigned an 'A' rating by
Lanka Ratings Agency Ltd. The debenture issue was oversubscribed with
the participation of Provident Funds and institutional investors seeking
The debentures issued by the Regional Development Bank and the
Ordinary Shares issued by Singhe Hospitals have been listed on the
Colombo Stock Exchange.
MBSL set up in 1982 is a subsidiary of the Bank of Ceylon.