Nations Trust Bank to raise Rs. 10 b via debentures

Nations Trust Bank PLC has announced plans to raise Rs. 10 billion via an unlisted debenture issue.

Its Board has resolved to issue 50 million Unlisted, Rated, Unsecured, Senior, Redeemable Debentures of Rs. 100 each amounting to a value of Rs. 5 billion with an option to issue a further 30 million of such debentures and a further option of 20 million debentures at the discretion of the Bank in the event of an oversubscription of each tranche aggregating to a total of Rs. 10 billion.

The issue comprises three types of debentures. Type A: Unlisted Rated Unsecured Senior Redeemable Debentures with a tenure of five years (202412029) and fixed Interest Rate of 12.50% p.a. (interest paid semi-annually). Type B: Unlisted Rated Unsecured Senior Redeemable Debentures with a tenure of five years (2024/ 2029) and a Fixed Interest Rate of 12.90% p.a. (interest paid annually and Type C: Unlisted Rated Unsecured Senior Redeemable Debentures with a tenure of seven years (2024/2031) with Fixed Interest Rate of 13.00% p.a. (interest paid annually).