Oct 25, Colombo: DFCC Bank, a growing commercial bank in Sri Lanka has executed a landmark debt issue in the international capital market on Thursday, 24 October, the Bank said in a disclosure to the Colombo Stock Exchange (CSE).
The fixed rate, senior unsecured international bonds of US$ 100 million were offered at a9.625% rate with s 5-year tenor.
The bonds were rated 'B' by S&P and 'B+' by Fitch.
The Bank said it has decided to access the international capital markets and diversify its funding sources following the proposal made in the government's last budget to support the Bank by way of foreign exchange risk cover from the Central Bank for long term funds raised through an international debt issue.
Also, the interest income from loans given to specific sectors from the proceeds of the Notes will be tax free.
Reportedly most of the money raised through the bond issue was expected to be loaned to the state and some used to roll-over maturing debt.
The DFCC Bank has held road shows in Singapore, Hong Kong and London and presented the investment opportunity to many potential investors, the disclosure said.