Hatton National Bank PLC (HNB) will issue Rs.4 billion worth unsecured subordinated redeemable debentures to fund its projected lending activities and strengthen the bank’s regulatory Tier 2 capital base.
HNB plans to list the debentures subject to receiving the necessary regulatory approvals.
Accordingly, Fitch Ratings has assigned the proposed issue an expected National Long-Term rating of ‘A+(lka) (EXP)’.
The proposed debentures are rated one notch below HNB’s National Long-Term rating of ‘AA-(lka)’ to reflect their subordinated status. The proposed debentures will have a five-year tenure with bullet principal repayment at maturity.