Fitch Ratings has assigned Hatton National Bank PLC (HNB, A(lka)/Stable) a final National Long-Term Rating of ‘BBB+(lka)’ for its proposed Sri Lankan rupee-denominated Basel III-compliant subordinated debentures, amounting up to Rs 12 billion. This final rating aligns with the expected rating assigned on April 4, 2024, following the receipt of documents confirming previously received information.
The proposed debentures, which will mature in five, seven, and ten years, are set to be listed on the Colombo Stock Exchange. HNB plans to utilize the proceeds to further strengthen its Tier 2 capital base, support loan growth, and mitigate maturity mismatches in the balance sheet. The bank anticipates that the debentures will qualify as Basel III-compliant regulatory Tier 2 capital.