Fitch Ratings has assigned Hatton National Bank PLC’s (HNB: AA-(lka)/Stable) Sri Lanka rupee-denominated Basel III- compliant subordinated debentures a National Long-Term Rating of ‘A(lka)’.
The final rating is the same as the expected rating assigned on February 8, 2021, and follows the receipt of documents conforming to information already received.
The debentures, totaling Rs 7 billion, will mature in 10 years and carry a fixed coupon. HNB expects the debentures to qualify as Basel III-compliant regulatory Tier 2 capital for the bank and include a non-viability clause subject to the occurrence of a trigger event, as determined by the Monetary Board of Sri Lanka.
HNB plans to use the proceeds to refinance its debentures maturing in 2021, to further strengthen its Tier 2 capital base and support balance-sheet growth.
The debentures are to be listed on the Colombo Stock Exchange.
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