Nations Trust Bank to launch Rights Issue

The Board of Directors of Nations Trust Bank PLC (NTB) resolved that subject to shareholder approval and approval of the Colombo Stock Exchange, a Rights Issue of one Ordinary Share will be offered, for every three Ordinary Shares at a price of Rs 25.00 per share. The total number of Rights shares to be issued is 41,928,668.

The Bank said an innovative attachment of warrants to the rights, will entitle all those who exercise their rights to be permitted to warrants, which could be converted to shares at a future date, at a fixed price. A shareholder will be entitled to Warrants only to the extent of the subscription to the Rights.

Director/Chief Executive Officer of Nations Trust Bank PLC Zulfiqar Zavahir, said, "The proceeds of the Rights Issue and the future proceeds upon exercising the warrants will ensure that the Bank is adequately capitalised to support its growth momentum over the next few years.

The attachment of warrants ensures that the commitment of the shareholders for the infusion of further capital is evident, giving confidence to regulators, depositors, rating agencies and other interested parties.

The attachment of warrants to the rights should be very acceptable to the shareholders, as they are called upon to only take up the rights as and when the Bank actually needs capital funds, at a price, which is fixed now. The warrants will be listed on the stock exchange so that in the interim period, it will be tradable."

The Bank said that the rights issue and the issue of warrants are subject to the approval of the Colombo Stock Exchange.

Nations Trust Bank is one of the fastest growing banks in Sri Lanka today.

Its market positioning of "One Bank Many Solutions" continues to be strongly supported by a host of financial services products and services that cater to the needs of the individual, corporate or institutional clients.