Equity Injection

Dec 13, 2007 (LBO) – Sri Lanka's Nations Trust Bank is making a one billion rupee cash call sweetened with warrants, giving an option to buy into the bank at a fixed price in 2010 and 2011, the company said Thursday. NTB has 31 branches, 8 leasing centers, 38 teller machines and issues American Express credit cards in Sri Lanka and is a part of the John Keells Holdings group. A rights issue of 41.9 million shares is being made at 25 rupees each in the proportion of one share for every three existing shares, raising 1048 million rupees.

The warrants give a chance to buy one share for every rights taken up at 30 rupee a share in 2010 and one share for every two rights taken up at 35 rupees in 2011.

"The proceeds of the Rights Issue and the future proceeds upon exercising the warrants will ensure that the Bank is adequately capitalized to support it’s growth momentum over the next few years," NTB chief executive Zulfiqar Zavahir said.

"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."

Holders would gain if the NTB shares at the exercise