HNB decides to raise Rs. 7 b via 10-year debenture issue

Monday, 30 November 2020 00:20 - - {{hitsCtrl.values.hits}}

Hatton National Bank PLC (HNB) has decided to raise Rs. 7 billion via a Basel III complaint debenture issue.

The bank’s Board of Directors last week resolved to issue 50 million Basel III compliant Tier 2, listed, rated, unsecured, subordinated, redeemable 10-year debentures with a non-viability conversion feature at Rs. 100 each with an option issue a further 20 million debentures in the event of an oversubscription of the original amount.

The move, however, is subject to market conditions and obtaining all necessary regulatory and shareholder approval.

HNB last raised Rs. 10 billion via a Basel III compliant debenture issue in September 2019.

The instruments included a five-year fixed rate of 12.30% per annum, payable annually, and seven-year fixed rate of 12.80% per annum payable annually.