Pan Asia Bank's Rs. 5bn debenture issue draws strong investor demand

Pan Asia Banking Corporation PLC's Senior Listed Rated Unsecured Redeemable Debenture issue, with a maximum value of Rs. 5 billion, has attracted substantial investor interest upon opening, with the offering becoming oversubscribed.

Each debenture carries a par value of Rs. 100 and will be listed on the Colombo Stock Exchange (CSE). The bank is offering two maturity options to investors: three-year debentures at 12.75% annual interest and five-year instruments at a higher rate.

The oversubscription reflects growing investor appetite for fixed-income securities in the local market, particularly among those seeking reliable returns in the current economic environment. The debentures' listing on the CSE will provide liquidity for investors seeking to trade their holdings before maturity.

The successful reception of Pan Asia Bank's debenture offering underscores continued confidence in the banking sector's stability and the institution's creditworthiness among domestic investors.