DFCC to raise Rs. 13 b via GSS+ Bonds and Blue Bonds

Friday, 1 August 2025 00:04 - - {{hitsCtrl.values.hits}}

DFCC Bank is to raise Rs. 13 billion via the issuance of innovative GSS+ Bonds and Blue Bonds listed on the Colombo Stock Exchange.

It will issue up to 100 million Basel III compliant, subordinated, listed, rated, unsecured redeemable GSS+ Bonds with a non-viability conversion option, each at an issue price of Rs. 100 with a term of up to 10 years. This is subject to obtaining all necessary regulatory and other approvals.

The Bonds will be issued with annual coupon payments. 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.

GSS+ refers to a category of financial products designed to fund projects with positive environmental and social impacts.

Separately, the DFCC Board also resolved to issue 30 million senior, listed, rated, unsecured, redeemable Blue Bonds subject to obtaining all necessary approvals.

The issuance will comprise two categories of Bonds: (i) fixed rate coupon Bonds to be issued at a par value of Rs. 100 with maturities of up to 5 years and (ii) zero coupon Bonds to be issued at a discount to face value, with maturities of up to 5 years.

The coupon/interest rates (and/or yield to maturity) is to be decided prior to the finalisation of the Trust Deed based on the market rates prevailing at that point in time.

Blue Bonds are debt securities designed specifically to finance projects related to ocean conservation and sustainable marine activities.

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