People’s Bank raises Rs. 25bn in Sri Lanka’s largest ever debenture issue

Shameela Senaratne Loku Kaluge - Deputy General Manager (Treasury, International and Investment)

Trimalie Fernando - Assistant General Manager (Investment)

People’s Bank has successfully completed Sri Lanka’s largest debenture issue to date, mobilising Rs. 25 billion through a Basel III compliant, Tier 2, unlisted, rated, unsecured, subordinated, redeemable debenture, accordion to a press release issued by the Bank.

The issuance stands as the highest amount raised through a debenture in the country’s history, encompassing both senior and subordinated instruments across listed and unlisted categories. The debentures were offered to investors with five-year and eight-year tenors.

The successful completion of this landmark transaction significantly strengthens the capital base of the state-owned lender, enhancing the resilience of its balance sheet to support sustainable long-term growth. The massive fund mobilisation also reflects strong investor confidence in the institution’s stability, notably achieved during a period when unlisted debt instruments typically navigate tighter market conditions.

Further solidifying its leadership within the financial sector, People’s Bank has also become the first state-owned bank in Sri Lanka to secure a Corporate Finance Advisor Licence from the Securities and Exchange Commission. This regulatory milestone underscores the bank’s strategic expansion beyond traditional banking parameters and its ongoing commitment to the development of the domestic capital market. The record-breaking debenture issue was structured and executed by the bank’s in-house investment banking arm, the People’s Bank Investment Banking Unit, which provided comprehensive advisory and execution expertise from inception to completion.

Since its establishment, the unit has played a critical role in the local capital markets, managing diverse debt and equity transactions across banking, insurance, plantations, and the public sector. Its portfolio of landmark deals includes the inaugural listed debenture of a licensed specialised bank and the largest debenture issuance by a non-banking financial institution.

To date, the investment banking unit has successfully managed thirty-three debenture listings and one initial public offering, collectively mobilising over Rs. 225 billion. The division is currently structuring two additional debt issuances expected to launch during the first half of 2026.