NTB Rs. 15 b debenture issue gets CSE nod, opens Friday

Wednesday, 17 June 2026 06:46 - - {{hitsCtrl.values.hits}}

Nations Trust Bank PLC (NTB) will open subscriptions on 19 June for a Basel III-compliant Tier 2 debenture issue aimed at raising up to Rs. 15 billion to strengthen its capital base and support future growth.

According to a Colombo Stock Exchange (CSE) circular issued yesterday, the CSE has granted in-principle approval for the listing of the bank’s Basel III-compliant, Tier 2, listed, rated, unsecured, subordinated, redeemable debentures with a non-viability conversion feature.

The issue comprises an initial offering of 100 million debentures at a par value of Rs. 100 each, seeking to raise Rs. 10 billion. NTB also retains the option to issue a further 50 million debentures in the event of an oversubscription, increasing the total amount raised to a maximum of Rs. 15 billion.

Investors will have the option of subscribing to three fixed-rate tenors. The five-year Type A debentures carry an annual interest rate and annual effective rate (AER) of 13.75%, while the seven-year Type B debentures offer 13.85%. The longest-dated 10-year Type C debentures will provide a fixed annual return of 13.95%. Interest on all three categories will be paid annually.

Tier 2 instruments form part of a bank’s supplementary capital and are designed to absorb losses in periods of financial stress, thereby strengthening the resilience of the banking system. The inclusion of a non-viability conversion feature aligns the issue with Basel III regulatory requirements applicable to licensed commercial banks.

Capital Alliance Partners Ltd. has been appointed manager to the issue, while SSP Corporate Services Ltd. will act as registrar. The prospectus was made available to trading participants yesterday.