HNB’s Rs. 4 b debenture issue opens 6 June

Tuesday, 21 May 2013 01:18 - - {{hitsCtrl.values.hits}}

HNB’s Rs. 4 billion listed debenture issue will have its official opening on 6 June whilst the public can begin subscribing to it from 28 May.

This is following the Colombo Stock Exchange approving in principle an Application for listing the debt securities of the Bank on the Main Board.

HNB will issue 20 million Unsecured, Subordinated, Redeemable Debentures at Rs. 100 each with an option to issue up to a further 20 million debentures in the event the initial offer is oversubscribed.

Managers to the issue is Acuity Partners Ltd. and SSP Corporate Services is the Registrars to the Issue.

Fitch has assigned A+ rating to HNB’s latest debentures. They are rated one notch below HNB’s National Long-Term rating of ‘AA-(lka)’ to reflect their subordinated status. The debentures have a five-year tenure with bullet principal repayment at maturity. Coupon payments are at a fixed rate, and paid annually, helping the bank to reduce its exposure to interest rate risk.

HNB is to use the proceeds to fund its projected lending activities and to strengthen the bank’s regulatory Tier 2 capital base.