Nations Trust Bank PLC (NTB) yesterday disclosed its plans to raise up to Rs.5 billion through a listed debenture issue.
The bank intends to raise Rs.3 billion through a rated, unsecured, subordinated, redeemable debenture with a tenure of five years and an option of issuing up to further Rs.2 billion in the event of an oversubscription.
Accordingly, the bank will issue 30 million debentures priced at Rs.100 each, with the ability to extend to further 20 million in the event of oversubscription of the initial tranche.
The issue is rated ‘A-(lka)’ by Fitch Ratings Lanka Limited.
The debentures are offered in three variants—Type A with a five-year fixed interest rate of 12.65 percent p.a. (AER 13.05 percent) payable semi-annually, Type B with a five-year fixed interest rate of 12.80 percent p.a. (AER 12.80 percent) payable annually and Type C with a five-year floating interest rate of six-month (gross) treasury bill rate +1.50 percent p.a. payable semi-annually.
“The funds thus raised are intended to finance the growth momentum of the bank and continue to maintain a healthy capital adequacy ratio. While extending the funding mix, the bank also intends to use this debenture to broad base their investor profile,” NTB said in a statement.
The issue will be opened for subscription from today and is managed by Waldock Mackenzie Limited (WML), the investment banking arm of the group, which is a fully-owned subsidiary of NTB.
WML specializes in capital market product offerings with a track record of over 10 years as a leading margin provider for equity trading business.