HNB lists in Luxembourg

Hatton National Bank (HNB), has 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 bank's 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.

Commenting on the transaction, HNB's 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 is a world class exchange 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 Lanka's best capitalized banks."

Theagarajah said that this landmark transaction was a key ingredient in their strategy to realise the full potential of the share price to reflect its true value".