HNB to raise Rs.15bn via rights issue

Sri Lanka’s second largest private lender, Hatton National Bank PLC (HNB), announced its plans yesterday to raise Rs.15 billion through a rights issue, subject to shareholder approval.
Accordingly, the bank plans to issue 70.1 million ordinary shares comprising of 56 million ordinary voting shares and 14.1 million ordinary non-voting shares in the proportion of one for six.
The voting shares will be issued at Rs.220 each and the non-voting shares at Rs.190 each.
HNB said the purpose of the share issue was to strengthen the capital base/balance sheet of the bank and to support the overall business growth.
The current stated capital of the bank is Rs.16.8 billion. 
“It is to be noted that the number of shares mentioned above could increase if any shares are issued to employees of the bank pursuant to the exercise of any options under ESOP (Employee Share Option Plan) of the bank prior to the Extra-Ordinary General Meeting to be convened for the purpose of obtaining the approval of the shareholders for the rights issue,” HNB said in a filing.