DFCC debenture issue draws 57 applications

DFCC Bank PLC’s oversubscribed Rs. 7 billion BASELIII-compliant debenture issue had drawn 57 applications. 

The Bank offered 50 million BASELIII-compliant Tier 2 listed, rated, unsecured, subordinated redeemable five and seven year debentures, with a non viability conversion at Rs. 100, each with an option to issue a further 20 million debentures in the event of original amount being oversubscribed.

When the issue closed on Tuesday (27 March), there were 57 applications requesting for debentures worth Rs. 7.13 billion. 

The biggest demand had been for Type B debentures (fixed rate 7 year debentures at 13% per annum)  attracting subscription worth Rs. 4.169 billion from 25 applications. 

The Type A (fixed rate five year debenture at 12.60% per annum ) drew 32 applications requesting for Rs. 2.96 billion worth of debentures. The majority of applications for both had been via payment made by cheques and RTGS. Fitch assigned ‘A+’  rating for the debentures. Funds raised from the Debenture Issue will be utilised to improve the Tier 2 capital of the Bank under the BASEL III regulations.

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