DFCC announces up to Rs.7bn Basel III sub debt

DFCC Bank PLC yesterday announced its director board’s decision to raise up to Rs.7 billion as Basel III compliant subordinated debt. 

To this end the bank plans to issue 50 million Basel III compliant subordinated, listed, rated, unsecured, redeemable debentures with a non-viability conversion option each at an issue price of Rs.100 with term up to seven years.

The debt issue will also have an option to issue a further 20 million of the said debentures in the event an oversubscription of the first tranche.

The bank said the issuing of debentures will be subjected to all necessary regulatory and other approvals.