2 July 2019 12:00 am
Fitch Ratings has assigned HNB Finance Limited’s Rs.2 billion subordinated debentures an expected long-term rating of ‘A-(lka) (EXP)’, one notch below the company’s national long-term rating, to reflect the subordination to the senior unsecured obligations.
The proposed debentures are to mature in five years and carry fixed coupons. The company plans to use the proceeds to strengthen its Tier II capital base and support its loan book expansion.
The proposed debentures are to be listed on the Colombo Stock Exchange.
Hatton National Bank PLC owns 51 percent of HNB Finance, although there is limited operational integration between the entities, as microfinance is not a major product for HNB.