Serendib Frontier Capital Raises Rs. 475 Million in Tier II Subordinated Debt for Merchant Bank of Sri Lanka & Finance PLC

Serendib Frontier Capital has successfully structured and placed Rs. 475 million in Tier II qualifying subordinated debt for Merchant Bank of Sri Lanka & Finance PLC (MBSL), providing MBSL with additional capital to support its growth and regulatory requirements.

The five-year debt instrument, executed through a trust structure, offered a more efficient and cost-effective alternative to a listed subordinated debenture. This structure enabled faster execution while optimizing costs. MBSL’s latest capital-raising initiative enhances its Tier II capital position, allowing the bank to expand its lending capacity and strengthen its financial base.

Serendib Frontier Capital managed the structuring and placement of the debt instrument, leveraging its expertise in structuring, capacity to innovate solutions to best suit clients' requirements, and access to investors. The firm specializes in private market transactions, offering clients solutions that improve execution speed and cost efficiency.

Merchant Bank of Sri Lanka & Finance PLC (MBSL) is a leading financial institution in Sri Lanka, offering a diverse portfolio of financial products and services, including corporate and retail financing, leasing, trade finance, and investment banking. With a strong commitment to innovation and customer-centric financial solutions, MBSL continues to play a pivotal role in the Sri Lankan financial sector, supporting businesses and individuals with tailored financial solutions to drive economic growth.

Commenting on the successful capital raise, the Chief Executive Officer of MBSL Mr. Dammika Hapuhinna stated:

"This strategic capital infusion, facilitated by Serendib Frontier Capital, marks a significant milestone in our ongoing efforts to strengthen MBSL’s financial position. The structured Tier II subordinated debt placement provides us with the necessary capital cushion to meet regulatory requirements while also supporting our long-term growth strategy. We appreciate the expertise and professionalism demonstrated by Serendib Frontier Capital in structuring and executing this transaction seamlessly, ensuring an optimal outcome for all stakeholders."

Commenting on the transaction, Serendib Frontier Capital CEO Mr. Kavinda Dasanayake stated:

"We thank MBSL for placing their trust in us to structure and execute an innovative financial solution amidst challenging market conditions. We are focused on providing financial solutions that align with the specific needs of our corporate clients. Our experienced team is engaged in sourcing both local and foreign funding while structuring financial transactions, including M&A. The successful placement for MBSL showcases our ability to structure and execute efficient funding strategies."

Serendib Frontier Capital is a boutique corporate finance advisory firm specialising in private market transactions and structured financial solutions. Backed by a team of experienced industry professionals, Serendib provides financial structuring, placement, and advisory services with access to both local and global investors.

Pic captions

1. Chief Executive Officer of MBSL Mr. Dammika Hapuhinna
2. Serendib Frontier Capital CEO Mr. Kavinda Dasanayake