PMBL Rights Issue oversubscribed

The one for one issue of Rights by People's Merchant Bank Limited (PMBL) was oversubscribed on December 5.

A total of 12.5 million ordinary shares were offered through this rights issue, at an issue price of Rs. 20 per share (inclusive of a premium of Rs. 10 per share). PMBL raised funds totalling Rs. 250 million from this rights issue.

Funds sourced from the rights issue will be utilised mainly to augment the bank's lending portfolio, which has grown by 40% in the last 12 months.

PMBL's lending portfolio consists of leasing, hire purchase and trade finance (bills discounting) and short term loans.

The proceeds of the issue will also be used for real estate projects, which consist of housing projects and land sales.

Over the years, PMBL has shown steady growth in its performance with an average growth in profits of over 80% during the past three years.

The main income generator for PMBL is its leasing division while the corporate finance, real estate and trade finance divisions provide significant contribution for the Bank's top line.

The bank currently operates six branches around the country with the sixth branch being opened in Elpitiya in October.

PMBL expects to further expand its branch network and to augment its real estate division in the next few years.