Thursday, November 28, 2019

Fitch revises HNB Finance’s Sub-Debt issue

Fitch Ratings has revised the expected National Long-Term Rating on HNB Finance Limited’s (HFL, A(lka)/Stable) proposed Sri Lanka rupee-denominated subordinated unsecured debentures to ‘BBB+(EXP)(lka)’ from ‘A-(EXP)(lka)’ following the publication of Exposure Draft: Non-Bank Financial Institutions Rating Criteria and Exposure Draft: Bank Rating Criteria on 15 November 2019, under which the debentures are rated.

The proposed debentures total LKR2 billion with a maturity of five years and carry fixed coupons. The company plans to use the proceeds to strengthen its Tier II capital base and support loan-book expansion. The proposed debentures are to be listed on the Colombo Stock Exchange.

The final rating is subject to the receipt of final documentation conforming to information already received.

 

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