“Total bids received were significantly higher than the issue amount and the issue closed at the end of the issue opening day itself, reflecting high investor confidence in the company and also serves to enhance the success story of this leading plantation company. A significant feature of this issue is the creation of a sinking fund. In order to enhance the credit, the company has set up a sinking fund to pay the debenture holders and the transfer of funds to the sinking fund is on a monthly basis,” it was noted.
The debenture was managed by the People’s Bank’s Investment Banking Unit. The other parties to the issue were trustees – Deutsche Bank AG, Colombo, lawyers – Nithya Partners, registrars – SSP Corporate Services Ltd., bankers – People’s Bank and auditors – KPMG, Chartered Accountants.
People’s Bank initiated investment banking activities in 2011 with the objective of expanding its footprint to investment banking activities to harness the opportunities arising from the rapid development of the post war economy and to increase its offering to its corporate client base, the release stated.