FINANCIAL CHRONICLE™
Dear Reader,

Registration with the Sri Lanka FINANCIAL CHRONICLE™️ would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
FINANCIAL CHRONICLE™️
www.srilankachronicle.com


Join the forum, it's quick and easy

FINANCIAL CHRONICLE™
Dear Reader,

Registration with the Sri Lanka FINANCIAL CHRONICLE™️ would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
FINANCIAL CHRONICLE™️
www.srilankachronicle.com
FINANCIAL CHRONICLE™
Would you like to react to this message? Create an account in a few clicks or log in to continue.
FINANCIAL CHRONICLE™

Encyclopedia of Latest news, reviews, discussions and analysis of stock market and investment opportunities in Sri Lanka

LISTED COMPANIES

Submit Post


ADVERTISE
Poll

EXCHANGE RATE PREDICTION: 2022

 
 
 
 

View results

ශ්‍රී ලංකා මූල්‍ය වංශකථාව - සිංහල
Submit Post


CONATCT US


Send your suggestions and comments

* - required fields

Read FINANCIAL CHRONICLE™ Disclaimer



Latest topics

» Buy lofc tomorrow - Maharaja
by rajithasahan Today at 11:27 am

» US inflation eased slightly in July
by ADVENTUS Today at 11:25 am

» SGH buys EXPO from retailers
by ADVENTUS Today at 11:23 am

» ACL; MELS; HHL; BIL; LWL- STOCKS TO WATCH
by ADVENTUS Today at 11:19 am

» LOFC Future
by ADVENTUS Today at 11:17 am

» Pakistan stocks surge on IMF Staff level agreement - CSE is warming up for the big run
by samaritan Today at 11:16 am

» LOLC FINANCE PLC (LOFC.N0000)
by Anushka Perz Today at 10:24 am

» L G I L - Maharaja special
by Chula Yesterday at 8:13 pm

» HAYLEYS PLC (HAYL.N0000)
by cseboss Yesterday at 11:34 am

» NO FURTHER INCREASE IN TAXES-PRES. RANIL WICKRAMASINGHE
by ADVENTUS Tue Aug 09, 2022 3:48 pm

» AAIC 100 = SCAP 16
by Equity Win Tue Aug 09, 2022 2:11 pm

» CARGO BOAT DEVELOPMENT COMPANY PLC (CABO.N0000)
by Dasun Maduwantha Tue Aug 09, 2022 12:10 pm

» Nestle‚ declares highest ever dividend
by Shiranli Tue Aug 09, 2022 11:24 am

» PRIME LANDS RESIDENCIES PLC (PLR.N0000)
by Anushka Perz Tue Aug 09, 2022 11:15 am

» MULTI FINANCE PLC (MFL.N0000)
by Eleven Mon Aug 08, 2022 9:28 pm

» AGSTAR PLC (AGST.N0000)
by Thushara Ayya Mon Aug 08, 2022 4:18 pm

» LIOC ....Get in soon
by samaritan Mon Aug 08, 2022 11:49 am

» Sinopec likely to enter Lankan fuel market
by samaritan Mon Aug 08, 2022 9:41 am

» RW - Rescue Warrior of Sri Lanka's Economy
by reyaz Mon Aug 08, 2022 8:17 am

» Should Central bank increase Interest rates?
by reyaz Mon Aug 08, 2022 7:52 am

EXPERT CHRONICLE™

MARKET CHAT


CHRONICLE™ ANALYTICS


ECONOMIC CHRONICLE

GROSS DOMESTIC PRODUCT (GDP)


CHRONICLE™ YouTube

LATEST TWEETS

You are not connected. Please login or register

FINANCIAL CHRONICLE™ » CORPORATE CHRONICLE™ » HNB Debenture Issue

HNB Debenture Issue

5 posters

Go down  Message [Page 1 of 1]

1HNB Debenture Issue Empty HNB Debenture Issue Mon May 20, 2013 4:51 pm

udeni

udeni
Manager - Equity Analytics
Manager - Equity Analytics

http://www.cse.lk/cmt/upload_cse_announcements/6771369044343_.pdf

Debt securities to be offered is subordinated debentures. Isn't the risk higher in such securities. I am under the understanding that in case of liquidation subordinated debenture holders are settled after the other debtors and lenders are settled. Your views pl.

sriranga

sriranga
Co-Admin

HNB’s Rs. 4 billion listed debenture issue will have its official opening on 6 June whilst the public can begin subscribing to it from 28 May.

This is following the Colombo Stock Exchange approving in principle an Application for listing the debt securities of the Bank on the Main Board.

HNB will issue 20 million Unsecured, Subordinated, Redeemable Debentures at Rs. 100 each with an option to issue up to a further 20 million debentures in the event the initial offer is oversubscribed.

Managers to the issue is Acuity Partners Ltd. and SSP Corporate Services is the Registrars to the Issue.

Fitch has assigned A+ rating to HNB’s latest debentures. They are rated one notch below HNB’s National Long-Term rating of ‘AA-(lka)’ to reflect their subordinated status. The debentures have a five-year tenure with bullet principal repayment at maturity. Coupon payments are at a fixed rate, and paid annually, helping the bank to reduce its exposure to interest rate risk.

HNB is to use the proceeds to fund its projected lending activities and to strengthen the bank’s regulatory Tier 2 capital base.
http://www.ft.lk/2013/05/21/hnbs-rs-4-b-debenture-issue-opens-6-june/

http://sharemarket-srilanka.blogspot.co.uk/

3HNB Debenture Issue Empty Re: HNB Debenture Issue Tue May 21, 2013 8:27 am

hettdas

hettdas
Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics

udeni wrote:http://www.cse.lk/cmt/upload_cse_announcements/6771369044343_.pdf

Debt securities to be offered is subordinated debentures. Isn't the risk higher in such securities. I am under the understanding that in case of liquidation subordinated debenture holders are settled after the other debtors and lenders are settled. Your views pl.

You are correct... Read below...

What It Is:

Subordinated debt is any outstanding loan that, should the borrowing company fail, it will be repaid only after all other debt and loans have been settled. It is the opposite of unsubordinated debt.

How It Works/Example:

Should an individual or company file for bankruptcy, the court will prioritize the outstanding loans which the liquidated assets will repay. Any debt with lesser priority qualifies as subordinated debt.

4HNB Debenture Issue Empty Re: HNB Debenture Issue Tue May 21, 2013 9:25 am

udeni

udeni
Manager - Equity Analytics
Manager - Equity Analytics

Thanks sriranga and hettdas.
As HNB debenturers are subordinated they should pay a higher interest to lenders to cover the risk. (or step motherly treatment?)

5HNB Debenture Issue Empty Re: HNB Debenture Issue Tue May 21, 2013 10:29 am

salt

salt
Vice President - Equity Analytics
Vice President - Equity Analytics

Fitch has assigned A+ rating to HNB’s latest debentures. They are rated one notch below HNB’s National Long-Term rating of ‘AA-(lka)’ to reflect their subordinated status

its A+ ratings
all listed bank debts are subordinated debt, they need to cover up capital shortfall in tier 11

6HNB Debenture Issue Empty Re: HNB Debenture Issue Tue May 21, 2013 11:12 am

udeni

udeni
Manager - Equity Analytics
Manager - Equity Analytics

salt,
In March 2013 the debenture issue that was held by MBSL was not subordinated.

http://www.cse.lk/cmt/uploadAnnounceFiles/4011362974405_380.pdf

It was oversubscribed on the first day of opening.

7HNB Debenture Issue Empty Re: HNB Debenture Issue Tue May 21, 2013 11:28 am

salt

salt
Vice President - Equity Analytics
Vice President - Equity Analytics

udeni,
MBSL is not a commercial bank, its specialized bank (LSB)

8HNB Debenture Issue Empty Re: HNB Debenture Issue Tue May 21, 2013 11:35 am

udeni

udeni
Manager - Equity Analytics
Manager - Equity Analytics

Thanks salt.

9HNB Debenture Issue Empty HNB debenture issue Mon May 27, 2013 1:12 pm

yaka

yaka
Manager - Equity Analytics
Manager - Equity Analytics

do u guys think its worth 14% pa for subordinate debenture and minimum of 1mn.need advice
http://www.cse.lk/pdf/HNB-Debenture-Issue-2013-Prospectus-Final-220513.pdf

10HNB Debenture Issue Empty Re: HNB Debenture Issue Mon May 27, 2013 1:57 pm

salt

salt
Vice President - Equity Analytics
Vice President - Equity Analytics

rate is not attractive
but rates are moving down, so its in line with market
debenture era is gone
thankfully, i placed some when rates are above 16.0%

11HNB Debenture Issue Empty Re: HNB Debenture Issue Mon May 27, 2013 2:02 pm

yaka

yaka
Manager - Equity Analytics
Manager - Equity Analytics

salt wrote:rate is not attractive
but rates are moving down, so its in line with market
debenture era is gone
thankfully, i placed some when rates are above 16.0%
i think debenture era is yet to come with sec planing to promote debenture trading in cse actively.

12HNB Debenture Issue Empty Re: HNB Debenture Issue Mon May 27, 2013 2:07 pm

salt

salt
Vice President - Equity Analytics
Vice President - Equity Analytics

they have been trying this since 1990
debentuers were listed for more than 10 years
first of all, they should try to get most liquid assets - GOSL treasuries to be gradable which is not yet accomplished

sriranga

sriranga
Co-Admin

http://www.cse.lk/cmt/upload_cse_announcements/5091370498573_.pdf
HNB Debenture Issue Hnb10

http://sharemarket-srilanka.blogspot.co.uk/

Back to top  Message [Page 1 of 1]

Permissions in this forum:
You cannot reply to topics in this forum