The Hatton National Bank (HNB) in a disclosure to Colombo Stock Exchange (CSE) recently announced that the bank has decided to increase the number of debentures to be issued to 50 million. The disclosure further said that the debentures will be Basel III compliant, tier II, listed, rated, unsecured, subordinated, and redeemable debentures with a non-viability conversion feature, amounting to Rs. 5 billion, with the option to issue a further 20 million debentures worth of Rs. 2 billion in the event of an oversubscription in the first tranche, and with a further option to issue 30 million debentures worth Rs. 3 billion at an issue price of Rs.100 per debenture.

In earlier disclosure to CSE the bank informed that the debenture issue was to be worth Rs. 7 billion. The disclosure further said that the tenure of the debentures will be five and seven years and would be subject to market conditions and obtaining all necessary regulatory and shareholder approval.

- Reporting by Devendra Francis