HNB to raise Rs.7bn via debentures

The director board of Hatton National Bank PLC (HNB) has resolved to raise up to Rs.7 billion via a Basel III-compliant debenture issue.

A stock exchange filing by the bank said it intends to issue 50 million Basel III-compliant, tier 2, listed, rated, unsecured, subordinated, redeemable 10-year debentures with a non-viability conversion feature, amounting to Rs.5 billion with the option to issue a further 20 million debentures in the event of an oversubscription, at an issue price of Rs.100 per debenture.

HNB said the issue is subject to market conditions and obtaining all necessary regulatory and shareholder approvals.