Sri Lankas largest private bank, Hatton National Bank (HNB), said its debenture was oversubscribed by a little over Rs. 1 bn when the issue opened Tuesday.
“We saw a strong demand from our retail customers for the shorter maturities of five and seven years. But the demand for the longer end 10 years came from institutional investors,” HNBs DGM Duleep Daluwatte told Lanka Business Online. rn
rnHNB initially planned to raise Rs. 1.5 bn unsecured subordinated, redeemable debentures, which would be listed on the Colombo bourses debt board. A further Rs. 500 mn was to be issued in the event of an oversubscription.rn
rnThe funds were raised mainly to boost the banks Tier II capital and ease the maturity mix match between its assets and liabilities. rn