DFCC to raise Rs. 8 b via debenture issue

Thursday, 26 January 2023 02:16 - - {{hitsCtrl.values.hits}}

DFCC Bank yesterday announced plans to raise Rs. 8 billion via the issuance of debentures.

Its Board of Directors has resolved to issue up to 80 million BASEL III compliant, subordinated, listed, rated, unsecured, redeemable debentures with a non-viability conversion option at Rs. 100 each. The tenor is up to seven years.

“The coupon frequency and the interest rates are to be decided closer to the finalisation of the Trust Deed based on the market rates prevailing at that point in time,” DFCC added.

The proposed debenture issue is subject to obtaining all necessary regulatory approvals.

The latest move comes after DFCC withdrew its previous announcement made on 30 September 2021 concerning the issuance of 7 million BASEL III compliant, Additional Tier 1, Rated, Listed, Unsecured, Subordinated, Perpetual, Callable, Convertible Bond with a non-viability full conversion and convertible into listed ordinary voting shares of the bank at the option of bond holders at Rs. 1,000.