DFCC Bank’s debenture issue to raise Rs. 7 billion will officially open today.
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 National Long-Term Rating of ‘A-(lka)’.
The debentures are of five and seven-year tenor and includes 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.