NTB’s Rs. 4 b debenture draws 38 applications

Nations Trust Bank Plc’s (NTB) Rs. 4 billion debenture issue had attracted 38 applications worth Rs. 4.177 billion. 

The Bank offered 35 million BASEL III-compliant, Tier II, listed, rated, unsecured, subordinated redeemable five-year debentures with a non-viability conversation at Rs. 100 each. 

Type A debenture offers 12.65% per annum (AER of 13.05%) payable semi-annually and the Type B debenture offers 13% per annum (AER 13.00%) payable annually.  Fitch has assigned the debentures a rating of “A-”.

Both types of debentures have garnered fair demand. Type A drew 18 applications worth Rs. 2.58 billion of which 16 were with payments made by cheques and RTGS. Type B saw 20 applications worth Rs. 1.59 billion inclusive of 19 applications with payments made by cheques and RTGS.

Funds raised through the Debenture Issue are expected to further improve the Capital Adequacy of the bank’s balance sheet in addition to improving the risk profile of the bank, enabling favourable funding options.

The managers to the issue are NTB Treasury and Investment Banking Division.