DFCC’s Rs. 8 b debenture issue snapped up

DFCC Bank PLC’s Rs. 8 billion debenture issue had been oversubscribed on its official opening day itself on 5 December 2024.

The bank issued 50 million BASEL III compliant Tier 2, listed, rated, unsecured, subordinated, redeemable 5 and 7 year debentures with a non-viability conversion at Rs. 100 each with an option to issue a further 30 million said debentures in the event of an oversubscription.

The fixed rate issue comprised two types of debentures. Type A of five year tenor offered 15.25% per annum payable annually and Type B 14.75% per annum payable annually.

DFCC had received applications requesting for over 80 million debentures hence the oversubscription and closure.

Basis of allotment will be notified later.

DFCC plans to use the proceeds to strengthen its Tier 2 capital base and support loan growth.

Joint managers to the issue were Capital Alliance Ltd., and Acuity Partners Ltd. Fitch Ratings has assigned DFCC Bank PLC’s (A-(lka)/Stable) proposed debentures a final National Long-Term Rating of ‘BBB(lka)’.