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Tuesday, 20 October 2020 01:10 - - {{hitsCtrl.values.hits}}
DFCC Bank’s latest listed debenture issue has drawn applications worth Rs. 4.5 billion as of Friday.
There had been 45 applications requesting for 4.29 billion Type A debentures and 3 applications worth Rs. 205 million for Type B debenture.
The issue aimed at raising Rs. 7 billion opened last Monday. The Bank announced its decision to close the issue today (20 October) by 4.30 p.m.
The bank is issuing 50 million BASEL III compliant, Tier 2, Listed, Rated, Unsecured, Subordinated, and Redeemable debentures with a non-viability conversion at an issue price of Rs. 100 each with an option to issue up to a further 20 million of said debentures, at the discretion of the bank, in the event of an oversubscription of the initial issue.
Fitch Ratings assigned the debentures a National Long-Term Rating of ‘A-(lka)’.
The debentures are of five- and seven-year tenor, and include a non-viability clause and will qualify as regulatory Tier 2 capital for the bank. The bank plans to use the proceeds to strengthen its Tier 2 capital base and support its loan expansion.
