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| Sunday, 26 June 2005 |
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HNB obtains listing on Luxembourg Stock exchange Hatton National Bank (HNB), Sri Lankas leading private sector bank announced that it had successfully obtained a listing on the Luxembourg Stock Exchange. Through this listing HNB will place 1,766,470 Global Depository Receipts (GDR) in Luxembourg at an issue price of US$ 5.51 per GDR. The above GDRs will represent 17,664,700 ordinary voting shares or 15% of the banks equity capital. The underlying shares have been issued to Deutsche Bank Trust Company Americas as the Depository Bank on behalf of GDR holders and Deutsche Bank AG Colombo will act as custodian for these shares. Successful completion of the GDR is a clear indication of the joint international level Corporate Finance capabilities of the HNB and Deutsche Bank which was formalised through a MOU in August 2004. Credo Corporate Finance Ltd of UK acted as the lead manager for this transaction and Corporate Finance Division of HNB was the advisor to the company. Commenting on the transaction HNBs Director/Chief Executive Officer Rajendra Theagarajah said this is the first time a Sri Lankan commercial bank has raised equity capital by issuing GDRs and obtained a listing in an International Stock Exchange. Luxembourg along with London and New York are world class exchanges which provides international investors excellent settlement and custodial services in addition to its vibrancy. This listing will make way for us to profile HNB to a wider group of international investors who would also have the confidence of investing in a stock which has cleared very stringent European listing requirements. Our tier I capital would be enhanced by Rs 971 million to over Rs 10 billion. This completes our capital raising exercise of Rs 2.4 billion initiated during second half of 2004 (Rs 1.43 billion was raised by way of a Rights Issue) and positions HNB as one of Sri Lankas best capitalised banks. Theagarajah added that this landmark transaction is a key ingredient in our strategy to realize the full potential of the share price to reflect its true value. |
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