DFCC Bank oversubscribes landmark Basel III compliant GSS bond issue

DFCC Bank PLC successfully closed its latest capital raising initiative on Friday (06), with its Basel III compliant GSS+ bond issue being oversubscribed hours after opening. The bank received applications for over 100 million bonds, exceeding the initial issuance value and prompting the bank to exercise its greenshoe option to raise the full Rs. 10 billion.

The issue, which offered Tier 2, listed, rated, unsecured, subordinated, redeemable bonds, was structured with tenors of 5, 7, and 10 years. While the initial issue sought to raise Rs. 7 billion, the strong investor appetite allowed the bank to issue an additional 30 million bonds to capture the surplus demand. The subscription list was officially closed at 4.30 p.m. on 6th February 2026, with the registrars to the issue, confirming that any applications received prior to the closure would be accepted.

This issuance falls under the Colombo Stock Exchange’s “GSS+” framework, designating the instruments as Green, Social, and Sustainability bonds. The bonds feature a non-viability conversion clause, a regulatory safeguard that allows for conversion into equity under specific trigger events, ensuring adherence to strict banking stability standards. The basis of allotment for the oversubscribed issue will be notified to the Colombo Stock Exchange in due course.