HNB Investment Bank, a leading name in Sri Lanka’s investment banking sector, proudly facilitated the historic issuance of Sri Lanka’s first-ever high-yield bond by Fintrex Finance Limited. This landmark transaction, valued at Rs. 1 billion, was fully subscribed on its opening day, underscoring the strong investor confidence in both Fintrex Finance and the broader capital market.
HNB Investment Bank acted as the exclusive financial advisor and structuring partner for the Tier 2, Listed, Rated, Unsecured, Subordinated, Redeemable 5-Year High-Yield Bond. The issuance, initially targeted at Rs. 500 million with an option to raise a further Rs. 500 million, was fully subscribed on 25 February 2025, reinforcing the appetite for high-yield investment opportunities in the Sri Lankan market.
Commenting on this milestone, Ray Abeywardena, Managing Director of HNB Investment Bank, stated, “We are honored to have played a pivotal role in structuring and facilitating this groundbreaking high-yield bond issuance for Fintrex Finance. This transaction marks a significant step forward in the evolution of Sri Lanka’s debt capital markets, introducing a new investment class that caters to sophisticated investors seeking enhanced returns. The overwhelming response to the issuance highlights the market’s readiness for innovative financial instruments and underscores the confidence in Fintrex’s growth trajectory.”
Yaveen Jayasekara, Chief Strategy Officer of HNB Investment Bank highlighting the extensive efforts behind structuring this pioneering financial instrumen stated, “Designing and executing Sri Lanka’s first-ever high-yield bond required meticulous planning, market insight, and a deep understanding of investor sentiment. This issuance not only sets a precedent for similar instruments in the future but also opens new avenues for companies looking to diversify their funding sources. We are proud to have worked closely with Fintrex Finance to make this vision a reality.”
The successful bond issuance marks Fintrex Finance’s transition into a public limited company (PLC) and represents a crucial step in strengthening its Tier II capital base. This will enable the company to expand its lending portfolio, bridge maturity mismatches, and continue delivering robust financial solutions to its customers.
As a trusted partner in capital market solutions, HNB Investment Bank remains committed to driving financial innovation, fostering investor confidence, and supporting the strategic growth ambitions of Sri Lanka’s corporate sector. The firm’s expertise in debt structuring and capital raising continues to reinforce its position as a premier investment bank dedicated to empowering businesses and unlocking value for stakeholders across industries.
HNB Investment Bank extends its appreciation to the regulatory authorities, investors, and all stakeholders who contributed to the seamless execution of this landmark transaction. This achievement further strengthens HNB Investment Bank’s commitment to shaping the future of Sri Lanka’s capital markets through innovative and strategic financial solutions.
