Nations Trust Bank goes for Rights Issue

Nations Trust Bank PLC (NTB) announced a Rights Issue of one ordinary share for every three ordinary shares at Rs 25.00 per share.

The total number of Rights shares to be issued is 41,928,668, the Board of Directors has resolved.

The Bank also announced an innovative attachment of warrants to the rights, which 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 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.”