Hatton discount debentures

Gaudente · 1 Hatton discount debentures Mon Aug 12, 2013 4:59 pm

Gaudente

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On the 8th of August CSE announced approval for listing of the new debenture issue of HNB , stating prospectus would be available today 12th August.
Yet I can't find it on the CSE website nor on the HNB one.
Can someone post it please ?

rainmaker · 2 Re: Hatton discount debentures Mon Aug 12, 2013 5:19 pm

rainmaker

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What's the point? Your small fish in that market if you are searching the internet for the prospectus.

Usually it gets hand delivered to the serious clients

funland · 3 Re: Hatton discount debentures Mon Aug 12, 2013 7:00 pm

funland

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Gaudente wrote:On the 8th of August CSE announced approval for listing of the new debenture issue of HNB , stating prospectus would be available today 12th August.
Yet I can't find it on the CSE website nor on the HNB one.
Can someone post it please ?

The following link might be of your interest:

http://www.ft.lk/2013/07/23/fitch-rates-hnbs-deep-discount-debentures-final-aa/

Gaudente · 4 Re: Hatton discount debentures Mon Aug 12, 2013 7:23 pm

Gaudente

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rainmaker wrote:What's the point?

The point is I want to know if I can apply , as I live in Thailand and need to fly to Sri Lanka should I decide to invest.

salt · 5 Re: Hatton discount debentures Mon Aug 12, 2013 10:09 pm

salt

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Rainmaker,
Can you tell me how HNB manage 75% reduction in personal cost on 2Q2014?

Prospects will be shortly available @ cse site
Key features,
it's a discounted coupon bond, coming @14% plus yield for 10 years which is seems very good

Chinwi · 6 Re: Hatton discount debentures Wed Aug 14, 2013 9:47 pm

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Gaudente wrote:On the 8th of August CSE announced approval for listing of the new debenture issue of HNB , stating prospectus would be available today 12th August.
Yet I can't find it on the CSE website nor on the HNB one.
Can someone post it please ?

I think by now you have go it.

If not,
http://www.cse.lk/upcoming_listings.do

Abstract:
Applications should be made for a minimum of Ten Thousand (10,000) Debentures each
(LKR677,150). Applications exceeding Ten Thousand (10,000) Debentures should be in
multiples of Ten Thousand (10,000) Debentures (LKR677,150). Applications for less than Ten
Thousand (10,000) Debentures will be rejected.

Gaudente · 7 Re: Hatton discount debentures Thu Aug 15, 2013 10:29 am

Gaudente

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eligible applicants include foreign investors, excellent , just booked my plane Cool

jonny · 8 Re: Hatton discount debentures Sat Aug 17, 2013 7:15 pm

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Have some one calcualated the return after 10 yrs (At maturity) for investor of 1 million rupees...??

Chinwi wrote:

Gaudente wrote:On the 8th of August CSE announced approval for listing of the new debenture issue of HNB , stating prospectus would be available today 12th August.
Yet I can't find it on the CSE website nor on the HNB one.
Can someone post it please ?

I think by now you have go it.

If not,
http://www.cse.lk/upcoming_listings.do

Abstract:
Applications should be made for a minimum of Ten Thousand (10,000) Debentures each
(LKR677,150). Applications exceeding Ten Thousand (10,000) Debentures should be in
multiples of Ten Thousand (10,000) Debentures (LKR677,150). Applications for less than Ten
Thousand (10,000) Debentures will be rejected.

xhora · 9 Re: Hatton discount debentures Sat Aug 17, 2013 8:08 pm

xhora

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jonny wrote:Have some one calcualated the return after 10 yrs (At maturity) for investor of 1 million rupees...??

Since investment needs to be made in bundles of 10,000 the nearest to Rs 1 Mil would be to invest in 20,000 debentures. Following table shows the cash flows arise from investing in such quantity.

Net cash inflow at the end of 10 year period would Rs 2,245,700/=
Calculating IRR on these cash flows we can get an Yield to maturity of 14.25%. In other words the real return to the investor is 14.25% at the end of 10 year period.

This is very attractive at this rate because
1. 10 Year Treasury bond rate is around 11%-12% and expected to fall
2. Maximum Fixed deposit period offered by banks is 5 year at around 13%

As interest rates falling, these corporate debentures become very attractive to lock in high interest rates for long periods of time. Laughing