Clive Fonseka, Chief Executive Officer/General Manager, People’s Bank and Shameela Senaratne Loku Kaluge, Deputy General Manager – Treasury, Investment Banking and Financial Institutions.
People’s Bank concluded the BASEL III Compliant Tier 2, Unlisted, Rated, Unsecured, Subordinated Redeemable Debentures with non-viability write down to the extent required by the Central Bank of Sri Lanka (CBSL) by raising more than 10 billion.
The sum raised by the debenture will enhance the Bank’s Tier 2 Capital base and further boost its strong Total Capital Adequacy ratio. The subordinated nature and medium—to long-term duration of the Debt Instruments issued in compliance with requirements under BASEL III would enable the Bank to expand its lending portfolio by further augmenting its regulatory capital buffers from their current levels.
The bank intends to utilize the proceeds of the Issue to expand the Bank’s loan book via diverse lending products in the ordinary course of business.
“We sincerely thank our prestigious investors for their support and for their confidence in us to make each debenture issue a success,” added Shameela Senaratne Loku Kaluge, Deputy General Manager—Treasury, Investment Banking and Financial Institutions.
Clive Fonseka, Chief Executive Officer/General Manager of People’s Bank, said,” The issuance will help to take the Bank’s solvency/ capital adequacy level to an Institutional time high by year-end, well above the minimum 13.5 percent stipulated for the Domestic Systemically Important Banks in Sri Lanka by the CBSL. The overwhelming response we received from investors for this debenture issue strongly indicates their confidence in the Bank, which in turn helps us forge ahead with the envisioned growth plans.”
