Strong investor interest in Pan Asia Bank debenture issue

With the successful completion of the Pan Asia Banking Corporation PLC’s (Pan Asia Bank) Rs. 4 billion debenture issue which was oversubscribed on the opening day, receiving subscriptions exceeding Rs.5.5 billion, the bank is now gearing up for a higher growth trajectory aiming to achieve a Rs.100 billion asset base.

This is the second such debenture the bank issued in a span of 12 months. Its Rs. 3 billion subordinated debenture issue in October 2014 was also oversubscribed on the opening day itself.

Pan Asia Bank’s Director and Chief Executive Officer, Dimantha Seneviratne attributed the success of the issue to the confidence placed on the bank and its improved performance, by investors. “I believe it was a strong endorsement received from the wider investment community on the bank’s direction and the recent performance,” Seneviratne said.

“The bank’s management took a bold decision to go ahead with the debenture at a time when there was uncertainty about the movement in interest rates and we are confident that we made the right decision. We will lock in these funds soon to ensure any downside risks are mitigated,” he said.

“The funds will also be used to stabilize our earnings stream and improve stock of liquid assets and government securities,” Seneviratne said. In early September, the bank received US $ 10 million re-financing line from the Europe based green financier, the Global Climate Partnership Fund (GCPF) to fund small to larger scale renewable energy and energy efficiency projects.

“This clearly demonstrates that, not just the local investors but also the larger foreign financing houses too are seeing the potential of investing in Pan Asia Bank,” he said.

“Ability to understand customer requirements effectively and fulfilling them with an efficient and courteous service has always been our forte. Pan Asia Bank is also known for the innovative products that have been introduced to meet customer needs. Therefore, in our branding efforts, we will be making use of those core strengths to differentiate Pan Asia Bank from the competition.

Another advantage of choosing this approach is that our staff and processes are already strongly aligned to deliver a superior service to our customers,” Seneviratne said.