DFCC goes for Rs. 7 b BASEL III debentures

DFCC Bank PLC will raise Rs. 7 billion via BASEL III compliant debentures.

The Bank said it will issue 50 million BASEL III compliant, Tier II, listed, rated, unsecured, subordinated, redeemable debentures with a non-viability conversion at an issue price of Rs. 100 with an option to issue a further 20 million debentures in the event of an oversubscription of the original amount.

The official opening of the issue is 26 March and investors can apply from today.

The debentures are to have maturities of five and seven years, and carry fixed coupons. The notes include a non-viability clause and will qualify as regulatory Tier 2 capital for the bank. The bank plans to use the proceeds to support its balance sheet growth and to improve its capital adequacy in light of new regulatory requirements.

Fitch Ratings has assigned debentures a final National Long-Term Rating of ‘A+ (lka)’.

Joint managers and placement agents to the issue are NDB Investment Bank Ltd., and Acuity Partners Ltd.