DFCC Bank's debenture issue oversubscribed
DFCC Bank’s three-year Listed Senior Unsecured Redeemable debenture
issue was opened and closed within hours, with an overwhelming
subscription, on the opening day.
This is the first time a financial institution raised debt in the
local market at a single-digit rate of interest signalling the interest
rate trends.
Rated AA- (lka) by Fitch ratings, the initial issue was to raise Rs 3
billion with an option to increase up to a further Rs 2 billion in the
event of oversubscription.
The funds raised through this issue will be deployed to supplement
and strengthen the funding base used for the Bank’s project lending
activities, specially focusing on strengthening the SME loan portfolio
to offer fixed rates of interest.
The Bank is also fully geared to support the Government's initiative
to develop the 5+1 hubs in advancing Sri Lanka beyond a middle income
economy, having aligned its strategic plans to support this initiative.
DFCC Bank CEO, Arjun Fernando said, “It is a great achievement for us
that the issue has been oversubscribed at the lowest interest rate, when
other similar rated issues were raised at much higher interest rates in
the recent past. |