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NSB records again its dominance in raising funds in the Debt Capital Market

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National Savings Bank (NSB), the premier most savings bank in the country furthering its dominance, successfully issued yet another debt capital bond to raise Rs.5 Bn.

This time it was a perpetual capital bond issued to augment the additional Tier 1 capital base of the Bank. It carried the customary features required for a bond of this nature; unlisted, unsecured, rated, subordinated and perpetual in maturity. Further, in compliance with Basel III requirements carried non-viability write down features as approved by the Central Bank of Sri Lanka.

This is the first time in the history of a savings bank, that a hybrid debt instrument of this nature and in this magnitude was issued, in the Sri Lankan Capital Market. In compliance with the statutory requirements of the Bank, the bond was not listed and was confined to qualified investors. The Bank is at the liberty of exercising a call option at its will only after the expiry of a minimum period of 5 years.

The successful closure of the issue, despite not having a specific date of maturity for the investment is a testament to the confidence, the investors have placed with the Bank.

The investors had an option of opting to earn an interest income at a fixed rate or a floating rate which was priced at very attractive terms for this type of a hybrid instrument. The main objective of the issue was to strengthen the additional Tier 1 capital base of the Bank.

NSB carries the highest credit rating, a bank can have in the country. This issue is just an extension of a series of issues made in the past, namely the largest international sovereign bond issue of USD One Billion, unlisted debenture issue of Rs.20 Bn. and further issuance of Rs.6 Bn. from 2013 – 2019. All these issues were structured and managed by the Corporate Finance Division of the Bank.

NSB being a pioneer financier of Sri Lanka’s infrastructure projects, would utilize the proceeds of the issue to fund long term funding requirement of the economy as well as to address the needs of the retail borrowers. The Bank’s customer base consists of retail customers of all strata, premier corporates and government entities. The Bank’s portfolio of lending also includes overseas ventures. The Bank humbly takes pride of being a partner of the major development projects in the country.

NSB will be celebrating its 50 years of presence in the banking fraternity of the country in a few months’ time with a mark of unparalleled track record of being a driving force in the country’s economic development and improving the living standards of the Sri Lankan people.

 

NSB with this solid history is poised to further its horizons in the coming years.



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CBSL and IFC launch National Financial Inclusion Strategy

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Sri Lanka’s first National Financial Inclusion Strategy (NFIS) aunched recently, aims to make financial services more accessible, efficient, and affordable for all households and businesses in the country.

The NFIS is a joint effort led by the Central Bank of Sri Lanka—with technical and financial assistance from IFC, a member of the World Bank Group—under the IFC-DFAT Women in Work program. The development of this strategy was a multi-stakeholder effort supported by the government of Sri Lanka.

“The National Financial Inclusion Strategy symbolizes our country’s commitment towards a better and inclusive Sri Lanka that will benefit all individuals and enterprises. I believe this strategy will complement the Government’s efforts to minimize the provincial income disparities, urban-rural inequalities, and to promote inclusive growth,” said Mahinda Rajapaksa, Prime Minister of Sri Lanka.

“More importantly, this strategy prioritizes future generations, having identified financial literacy as a key pillar. The proposal to strengthen the national curriculum in this area is a positive step. Investing in the education of our younger generation is the most significant investment we can make as a nation, as this will be a particularly helpful approach to the systematic correction of the financial habits of Sri Lankans,” the Prime Minister said.

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HNB – Havelock City partnership offers exclusive Ezy Pay Home Loans facility

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HNB PLC has partnered with Havelock City mixed-use development project to offer prospective homeowners of state-ofthe-art luxury apartments in Stratford and Melford Towers (Phase 3 – COC certified) and Peterson and Edmonton Towers (Phase 4) with the exclusive Ezy Pay Home Loans facility.

The partnership is set to offer customers the unprecedented opportunity to make a payment of only 20% and immediately occupy the limited units available in Phase 3 of the project or invest in apartments available in Phase 4, scheduled to be completed by May 2021. Further, Havelock City will take on the customer’s interest payment for one year.

“We have witnessed an increase in the demand for apartments and are aware that there is a limited stock of units available in the heart of Colombo. Therefore, we hope that this partnership with Havelock City will offer our customers looking to invest in a home of their own the facility to either move into an apartment immediately or invest in a home of their dreams,” HNB Head of Personal Financial Services, Kanchana Karunagama said.

Prospective homeowners can make use the bank’s flexible repayment options, such as the Step-up facility, which offers a repayment option in line with the customers evolving income. Customers can also obtain a maximum repayment period of 25 years for the loan facility for an attractive interest rate starting from just 7%.

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DPL lends a hand to children in Monaragala Rubber Farming Communities

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As part of its ongoing efforts to empower and uplift the livelihood of its farmer co-operative societies, Dipped Products PLC (DPL) distributed school bags to the children of 1,500 smallholder rubber farmers for the 10th consecutive year, under its flagship Firstlight CSR project.

This year’s distribution recorded the largest donation of school bags, which was nearly a two-fold increase from the previous year, bringing the total value of the distribution up to nearly Rs. 1 million.

Taking place at the Pinwatta Bodimalu Viharaya in Medagama, Monaragala, this latest distribution marks the Company’s continued efforts to support the smallholder rubber farming communities, by ensuring that their essential needs are looked after.

“Especially in this time of economic uncertainty, with the nation facing significant challenges and hardships, it is truly touching to see the positive impact which we continue to have on the underprivileged smallholder rubber farming communities. We believe that programmes like Firstlight hold the key to enhancing the livelihoods of our 1500-strong rubber farmers, providing them with an improved quality of life, whilst paving the way to open up new opportunities and a brighter future. This is why, with the enthusiastic response we have received over the years, we have now also expanded this school bag distribution to include the District of Kegalle,” Dipped Products Deputy Managing Director, Pushpika Janadheera said.

 

 

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