Sri Lanka Hatton National Bank debentures oversubscribed

COLOMBO, Dec 04, 2014 (EconomyNext) – Sri Lanka’s Hatton National Bank announced its three billion-rupee debenture issue was oversubscribed Thursday and closed the same day.

HNB issued the debentures, with an option to go up to a maximum of four billion rupees if oversubscribed, to raise funds to reduce asset and liability maturity mismatches and interest rate risk, and to lock in medium-term guaranteed funding.

They have tenors of three, five and 10 years and carrying annual fixed coupon rates of 6.88 percent, 7.75 percent and 8.33 percent payable semi-annually.

The debentures are exempted from withholding tax and corporate income tax.

The 30 million debentures with a face value of 100 rupees each were rated AA-(lka) by Fitch Ratings and are to be listed on the Colombo Stock Exchange.


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