Raising Funds

May 06, 2011 (LBO) – Sri Lanka’s Hatton National Bank said it plans to raise at least 15.07 billion rupees through a rights issue and private placement to strengthen its capital and balance sheet and to support growth. It intends to raise 10.5 billion rupees from the rights issue of one share for every six held by issuing 47.9 million voting shares at 219.50 rupees each, a stock exchange filing said.

The bank aims to raise almost 1.4 billion rupees more by issuing 11.69 million non-voting shares at 119.50 rupees each.

HNB also aims to raise at least 3.17 billion rupees from the private placement of 13.5 million shares at a price not less than 235 rupees a share.

The private placement will be offered to local and foreign institutional investors who offer the highest price. They will not be entitled to any rights shares.