Finance

HNB to Raise Up to Rs12 Bn Through Debenture Issue

Hatton National Bank Plc (HNB) is set to raise up to Rs12 billion through a new debenture issue, the bank announced. The debentures, compliant with Basel III regulations, will be Tier 2, listed, rated, unsecured, subordinated, redeemable, and include a non-viability conversion feature. Each debenture will be priced at Rs100.

The initial issue will include 80 million debentures across three maturities: 5-year (2024/2029), 7-year (2024/2031), and 10-year (2024/2034). If demand exceeds expectations, an additional 40 million debentures may be issued.

The Colombo Stock Exchange has granted preliminary approval for the listing. The subscription period opens on August 16.

NDB Investment Bank Limited and Acuity Partners (Private) Limited are serving as joint managers for the debenture issue.