HNB goes for Rs. 12 b debenture issues

The Colombo Stock Exchange (CSE) has approved in principle the listing of a maximum of 120 million Basel III compliant –Tier 2, Listed, Rated, Unsecured, Subordinated, Redeemable five-year (2024/2029), seven-year(2024/2031), and 10-year (2024/34) debentures, with a non-viability conversion (“debentures”), at the par value of Rs. 100 each by Hatton National Bank.

HNB will issue 80 million said debentures with an option to issue a further 40 million with a further option to issue a further 20 million debentures in the event of an oversubscription of the initial issue to raise up to a maximum of 12 billion.

The debentures are of four types: Type ‘A’ five-year fixed coupon rate of 13.00% p.a. (AER 13.00%), payable annually; Type ‘B’ five-year fixed coupon rate of 12.60% p.a. (AER 13.00%), payable semi-annually; Type ‘C’ seven-year fixed coupon rate of 13.25% p.a. (AER 13.25%), payable annually; and Type ‘D’ 10-year fixed coupon rate of 13.50% p.a. (AER 13.50%), payable annually.

The joint managers to the issue are NDB Investment Bank and Acuity Partners.

The issue is up for subscription from today and will officially open on 16 August.