Pan Asia Banking Corporation PLC plans to raise up to 5 billion rupees through an issue of listed, rated, senior, unsecured, redeemable debentures, with the subscription list opening on 1 October 2026.
The bank will offer an initial issue of up to 20 million debentures at 100 rupees each. If that tranche is oversubscribed, it will issue a further 20 million debentures, and another 10 million if the second tranche is also oversubscribed — a maximum of 50 million debentures, or 5 billion rupees at the 100-rupee issue price.
Two options on offer
Investors can choose between two tenors:
- Type A — a 3-year tenor at a fixed 12.75 percent per annum, with an annual effective rate of 12.75 percent, payable annually.
- Type B — a 5-year tenor at a fixed 13.50 percent per annum, with an annual effective rate of 13.50 percent, payable annually.
The 75-basis-point step between the two reflects the additional two years of tenor.
Commercial Bank of Ceylon PLC’s Investment Banking Unit is the manager to the issue, and SSP Corporate Services (Private) Limited is the registrar.
Pan Asia Bank shares were trading at 52 rupees, up 0.39 percent, at the time of the report.
Context
Senior unsecured debentures are a standard route for Sri Lankan licensed commercial banks to lengthen the maturity profile of their funding and support capital planning, rather than relying on shorter-dated deposits alone.
Pan Asia Bank has come to the debenture market repeatedly over the years with smaller issues. The bank reported crossing 350 billion rupees in assets at the first-half stage this year.
EconomyNext did not report the specific use of proceeds or the rating assigned to the issue.
