NTB to raise Rs. 4 b via unlisted debentures

Nations Trust Bank has announced plans to raise Rs. 4 billion via the issuance of an unlisted debenture. 

It said the Board of Directors has decided to issue 30 million unlisted, rated, unsecured, senior, redeemable debentures of a par value of Rs. 100 each, amounting to a total of Rs. 3 billion, with the option of issuing an additional 10 million such debentures at the discretion of the bank in the event of an oversubscription of the initial issue, aggregating to a total sum of up to Rs. 4 billion. 

The bank will offer two types of debentures. Type A is of five-year tenor with a fixed rate of 8.9% per annum and interest paid semi-annually. Type B is also of five-year tenor with a fixed interest rate of 9.15% payable annually. 

The bank has obtained the approval of the Securities and Exchange Commission of Sri Lanka.