NTB to raise up to Rs.4bn via unlisted debt

The board of directors of Nations Trust Bank PLC (NTB) has decided to raise up to Rs.44 billion via an unlisted, rated unsecured, senior, redeemable debenture issue.

Accordingly, the bank is planning to issue 30 million unlisted, rated unsecured, senior, redeemable debentures of the par value of Rs.100 each, with an option to further issue 10 million of the same debentures in the event of the oversubscription of the initial issue.

NTB said it obtained the approval of the Securities and Exchange Commission for the said debenture issue on June 10, 2021.

The debentures issued under two types will have a tenure of five years (2021/2025) and the Type A debentures will carry a fixed interest rate of 8.9 percent per annum and the Type B debentures will carry an interest rate of 9.15 percent per annum.

The interest on Type A debentures will be paid semi-annually and for Type B debentures the interest rates will be paid annually.