HNB announces plans to raise up to Rs.12bn via debenture issue

Sri Lanka’s second largest private lender by assets, Hatton National Bank PLC (HNB) is gearing to raise up to Rs.12 billion through a Basel III-compliant listed debenture issue.
A resolution in this regard was passed by HNB’s board of directors on August 31, 2023.
Accordingly, the bank plans to issue 80 million Basel III-compliant, Tier II, listed, rated unsecured, subordinated, redeemable debentures for tenors of 5 years, 7 years and 10 years with a non-viability conversion feature amounting to Rs.8 billion at an issue price of Rs.100 per debenture.
It plans to issue further 4 million debentures amounting to Rs.4 billion in the event of an oversubscription of the initial tranche, subject to market conditions and obtaining all necessary regulatory and shareholder approvals.