Colombo, Sri Lanka – 24 September 2026 – Pan Asia Banking Corporation PLC (“Pan Asia Bank”) has officially announced the impending issuance of up to LKR 5 billion in Listed, Rated, Senior, Unsecured, Redeemable Debentures 2026. This significant capital raising initiative, approved in principle by the Colombo Stock Exchange (CSE), is set to open its subscription list on 01st October 2026, presenting a compelling fixed-income investment opportunity for the Sri Lankan market.
The move by Pan Asia Bank underscores its strategic efforts to strengthen its capital base and fund future growth objectives. The debentures, which carry a par value of LKR 100/- each, aim to attract a diverse range of investors seeking stable returns in a dynamic economic landscape.
Key Details of the Debenture Issue
The initial offering comprises up to twenty million (20,000,000) debentures. In the event of an oversubscription of the initial issue, Pan Asia Bank retains the discretion to issue a further twenty million (20,000,000) debentures, followed by an additional ten million (10,000,000) debentures if the initial and second tranches are oversubscribed. This flexible structure allows the Bank to raise a maximum amount of Sri Lankan Rupees Five Billion (LKR 5,000,000,000).
The debentures are offered in two distinct types, each designed to cater to varying investor preferences:
- Type A: Offers a Fixed Interest Rate of 12.75% per annum with an Annual Effective Interest Rate (AER) of 12.75% over a 3-year tenor. Interest payments will be made annually.
- Type B: Provides a Fixed Interest Rate of 13.50% per annum with an Annual Effective Interest Rate (AER) of 13.50% over a 5-year tenor. Interest payments will also be made annually.
These rates position the Pan Asia Bank debentures as an attractive option for investors looking to secure predictable returns over medium-term horizons.
Subscription Process and Key Facilitators
Investors keen on participating in this offering should note that the subscription list officially opens on 01st October 2026. Prospective investors are advised to review the comprehensive prospectus for full details on the investment.
Facilitating this significant issuance are:
- Managers to the Issue: Commercial Bank of Ceylon PLC, through its esteemed Investment Banking Unit, located at No. 55/57, 4th Floor, Carsons Building, Hospital Lane, Colombo 01.
- Registrars to the Issue: S S P Corporate Services (Private) Limited, situated at No. 101, Inner Flower Road, Colombo 03.
Softcopies of the prospectus have been made available to Trading Participants today, 24th September 2026, ensuring that all necessary information is disseminated in a timely manner ahead of the subscription opening.
This debenture issuance marks a crucial step for Pan Asia Bank in its ongoing efforts to optimize its funding profile and support its strategic expansion plans within Sri Lanka’s competitive banking sector. The attractive fixed rates are expected to draw strong interest from both institutional and individual investors seeking stable returns from a reputable financial institution listed on the Colombo Stock Exchange.
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