HNB approves USD50 mln share issue to ADB, up to 9.9 pct stake

Sept 01, 2016 (LBO) – The Hatton National Bank PLC board has approved issuing shares for 50 million dollars to the Asian Development Bank by way of a private placement, making the development lender a strategic investor.

“The proceeds of the issue of shares by private placement as aforementioned will be utilized for the purpose of strengthening the capital base/balance sheet of the Bank and supporting the overall business growth of the Bank,” the bank said in a stock exchange filing.

The private placement of up to 9.9 percent of the shareholding is subject to shareholder and regulatory approval.

The shares will be offered at the average price at which the shares were traded during the 30 market day period preceding the date of the EGM at 220 rupees, if the average price is more than 220 rupees, and 190 rupees, if the average price is less than 190 rupees.