State-owned savings giant NSB is going for a Rs. 5 billion first-of-its-kind hybrid bond issue. 

The proposed bond program is Basel III compliant, unlisted, rated, unsecured, subordinated, perpetual, additional Tier I. 

ICRA Lanka Ltd., which has assigned a rating of [SL]AA(hyb) with Stable outlook for the proposed program, said the rated instrument is a hybrid subordinated instrument with equity-like loss-absorption features, which may translate into higher levels of rating transition and loss severity vis-à-vis conventional debt.

“The instrument holds a great significance as an example to capital market innovation,” ICRA Lanka said. 

ICRA assigns NSB’s upcoming Rs. 5 b hybrid bond issue AA