Sri Lanka’s HNB to strengthen balance sheet with rights issue

Apr 28, 2017 (LBO) – Sri Lanka’s Hatton National Bank is to issue up to 70,082,228 new ordinary shares by way of a rights issue, the company said in a stock exchange filing.

Subject to exchange and shareholder approval, the bank is to issue 55,995,792 ordinary voting shares at 220 rupees each in the ratio of one share for every six shares held.

Under this rights issue, the bank is also issuing 14,086,436 ordinary non-voting shares at 190 rupees each in the ratio of one share for every six.

The bank stated that the number of new shares could increase if any shares are issued to employees of the bank under Employee Share Option Plan.

HNB further said these proceeds will be utilized to strengthen the capital base and balance sheet of the bank and to support the overall business growth of the bank.

The current stated capital of Hatton National Bank is 16,798,244,894 rupees.