HNB’s Rs. 7 b BASEL III compliant debenture issue opens

Monday, 12 July 2021 00:22 - - {{hitsCtrl.values.hits}}

Hatton National Bank’s (HNB) Rs. 7 billion via BASEL III compliant convertible debentures are up for grabs by qualified investors.

The debenture issue was first announced in November 2020 and HNB said following the in-principle approval by the Colombo Stock Exchange the issue is now open.

It will offer 50 million BASEL III Tier 2, listed, rated, unsecured, subordinated, redeemable 10 year debentures with a non-viability conversation. In the event of an oversubscription it will issue a further 20 million such debentures.

The debentures will carry a fixed rate of 9.50% payable annually.

The issue official opens on 15 July but can be subscribed from now on.

Joint managers and placement agents are Acuity Partners Ltd. and Capital Alliance Partners Ltd.

It last had a BASEL III compliant debenture issue worth Rs. 10 billion in September 2019. The two-type issue was oversubscribed drawing applications worth Rs. 16.4 billion.

The five-year debenture offered a fixed rate was 12.30% payable annually and seven-year fixed rate instrument was 12.80% payable annually.