Be the First to Know

Nations Trust Bank unlisted Rs. 5 bn debenture oversubscribed on opening

0 92

- Advertisement -

Approved by the Securities and Exchange Commission of Sri Lanka and announced in June 2021, the issue was structured by Nations Trust Bank’s Structured Finance Unit and its Management and Placement was done by the Bank’s Treasury Unit.

The Bank had options to issue up to a further 10 million debentures valued up to LKR 1 billion, in the event of an oversubscription of the initial issue, and succeeded in exceeding the initial offer value by LKR 2 billion.

Nations Trust Bank Chief Executive Officer/ Director, Priyantha Talwatte stated, “this Unlisted Debenture issue’s success is a testament to investor confidence in Nations Trust Bank’s financial stability, and the capabilities. One of the key objectives of the issue is to utilize the provided medium-term stable funding towards the expansion of the Bank’s lending portfolio. We hope that the funds would further reduce the tenor mismatch between the shorter-term liabilities and the medium-term assets and overall, strengthen the Bank’s funding profile.”

Under the issue, the Bank offered two types of debentures: Type A– a five-year tenure with a fixed rate of 8.9% per annum and interest paid semi-annually and Type B – a five-year tenure with a fixed interest rate of 9.15% payable annually.

Source DailyNews
Leave A Reply

Your email address will not be published.