The Hatton National Bank’s Director Board has granted the Asian Development Bank (ADB) approval to purchase a substantial equity stake in the Bank by way of 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 US$ 50 mn, 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 to 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 own extensive technical expertise, HNB aims to further strengthen its systems and processes.
HNB MD and CEO Jonathan Alles said the technical assistance that will be available through this strategic investment will power a complete transformation process within the organisation in order to further augment HNB’s position in the digital space.HNB will also be in a position to harness technical expertise to further refine its stringent risk management framework and drive continuous process improvement.
The ADB will also provide HNB with access to a wealth of knowledge on world class governance standards, corporate social responsibility and sustainable banking practices which HNB aims to integrate into its own business model, risk management framework and governance practices going forward.
Additionally, the capital infusion will support HNB, as it moves towards implementation of more stringent capital adequacy requirements stipulated under the BASEL III regulatory framework. The ADB’s investment in HNB will serve to provide a sizable capital buffer and position HNB as one of the best capitalized commercial banks in Sri Lanka.
This partnership with the ADB is also anticipated to significantly raise the profile of HNB on the global stage, potentially opening up new avenues for the bank to raise funding from international sources at attractive rates and long tenors; an area in which HNB has already demonstrated prolific success, most recently in relation to the raising of US$ 185 mn from multilateral financial institutions including US$ 100 mn from the ADB.
Upon securing regulatory approval and shareholder consent at an Extraordinary General Meeting (EGM), the Bank will issue new ordinary voting shares worth US$ 50 mn, 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 to 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 own extensive technical expertise, HNB aims to further strengthen its systems and processes.
HNB MD and CEO Jonathan Alles said the technical assistance that will be available through this strategic investment will power a complete transformation process within the organisation in order to further augment HNB’s position in the digital space.HNB will also be in a position to harness technical expertise to further refine its stringent risk management framework and drive continuous process improvement.
The ADB will also provide HNB with access to a wealth of knowledge on world class governance standards, corporate social responsibility and sustainable banking practices which HNB aims to integrate into its own business model, risk management framework and governance practices going forward.
Additionally, the capital infusion will support HNB, as it moves towards implementation of more stringent capital adequacy requirements stipulated under the BASEL III regulatory framework. The ADB’s investment in HNB will serve to provide a sizable capital buffer and position HNB as one of the best capitalized commercial banks in Sri Lanka.
This partnership with the ADB is also anticipated to significantly raise the profile of HNB on the global stage, potentially opening up new avenues for the bank to raise funding from international sources at attractive rates and long tenors; an area in which HNB has already demonstrated prolific success, most recently in relation to the raising of US$ 185 mn from multilateral financial institutions including US$ 100 mn from the ADB.
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