Sri Lanka’s Hatton National Bank to increase number of debentures to be issued to 50 million
A private bank in Sri Lanka, the Hatton National Bank (HNB) has reportedly announced that it has decided to increase the number of debentures to be issued to 50 million, Basel III compliant, tier II, listed, rated, unsecured, subordinated, and redeemable debentures with a non-viability conversion feature.
A local media has reported that the debentures are expected to amount to Rs. 5 billion, with the option issue a further 20 million debentures (Rs. 2 billion) in the event of an oversubscription in the first tranche, and with a further option to issue 30 million debentures (Rs. 3 billion) at an issue price of Rs.100 per debenture.
Earlier the debenture issue was to be worth Rs. 7 billion.
The tenure of the debentures will be five and seven years and would be subject to market conditions and obtaining all necessary regulatory and shareholder approval, reports stated.
OSL take:
The decision by Sri Lanka’s HNB to increase the number of debentures issued is an indication of the increase in demand by interested investors. Given Sri Lanka’s growing economy as well as the string banking sector, the HNB debenture issue would provide an ideal investment opportunity for foreign businesses/investors.
| Article Code : | VBS/AT/28012019/Z_1 |