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| Sunday, 16 January 2005 |
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NTB raises EURO 5 million subordinated debt Nations Trust Bank has successfully negotiated a Euro 5 million equivalent Sri Lankan Rupee denominated, subordinated loan from Nederlandse Financiering - Maatschappij voor Ontwikkelingslanden NV (FMO) based in the Hague, Netherlands, repayable over 10 years, with a grace period of five years. Monetary Board approval has been received. The terms of the loan allows Nations Trust to include it under Tier II Capital, boosting their Capital adequacy by approximately 6%. This further strengthens the capital position of the Bank which also did a Rights Issue raising approximately Rs. 455 million in 2003. The equivalent of Euro 2.5 million (Rs. 350 million) has been disbursed already while the second tranche of a further Euro 2.5 million equivalent is due in the first quarter of 2005. "This is the first time that a local commercial bank has obtained a subordinated loan from a foreign development organization without any government guarantee, and it is a reflection of the positioning of Nations Trust Bank in terms of its risk profile and our ability to work with overseas agencies which has led to Nations Trust being considered favourably", CEO NTB, Zulfiqar Zavahirsaid. |
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