ADB to fuel HNB growth

The Board of Directors of HNB PLC has granted the Asian Development Bank (ADB) approval to purchase a substantial equity stake in the Bank through a fresh issue of shares.

Upon securing regulatory approval and shareholder consent at an Extraordinary General Meeting (EGM), the Bank will issue new ordinary voting shares worth USD 50 million, thereby enabling ADB take up to 9.9% equity stake in the Bank with the valuation of each share being based on the 30-day average trading price immediately preceding the EGM but restricted to a price band between Rs. 190 - Rs. 220.

HNB's breakthrough partnership with the ADB is anticipated to open up new business opportunities across multiple areas including SME, Microfinance, project finance and renewable energy.

Fuelled by this fresh infusion of capital and guided by the ADB's technical expertise, HNB aims to further strengthen its systems and processes.

As recently outlined by the MD/CEO of HNB Jonathan Alles, HNB is on its way on an extensive digital transformation journey.

The technical assistance that would be available through this strategic investment will power a complete transformational process within the organization.

The capital infusion will support HNB, as it moves towards implementation of more stringent capital adequacy requirements stipulated under the BASEL III regulatory framework.

This landmark partnership with the ADB is also anticipated to significantly raise the profile of HNB on the global stage.

HNB demonstrated success, most recently in relation to the raising of USD 185 million from multilateral financial institutions including USD 100 million from the ADB.

This strategic partnership will also widen the horizons for inorganic growth for HNB beyond the shores of Sri Lanka, according to a press release by HNB.