Colombo, 03 September 2026
DFCC Bank PLC, a leading financial institution in Sri Lanka, today announced a significant move to bolster its capital base and ensure regulatory compliance with the issuance of Basel III compliant, listed, rated, unsecured, subordinated, redeemable debentures. The Colombo Stock Exchange (CSE) has granted in-principle approval for the listing of these debt securities, paving the way for a maximum capital raise of LKR 12.5 billion.
The highly anticipated issue is designed to strengthen DFCC Bank’s capital structure in line with the Central Bank of Sri Lanka’s Basel III framework, which mandates enhanced capital adequacy standards for financial institutions. This initiative underscores the Bank’s commitment to maintaining a robust and resilient financial position in the evolving economic landscape.
Key Details of the Debenture Issue
The offering comprises up to 125,000,000 debentures, each with a par value of Sri Lankan Rupees One Hundred (LKR 100/-). Investors will be offered a fixed interest rate of 13% per annum, payable annually, translating to an Annual Effective Rate (AER) of 13%. These debentures carry a 5-year tenure, maturing in 2031 (2026/2031).
The debentures feature a crucial “Non-viability Conversion feature,” a standard requirement for Basel III compliant instruments. This provision allows for the conversion of the debentures into equity under specific circumstances determined by regulatory authorities, thereby absorbing losses and protecting depositors in a potential financial stress scenario for the bank.
Highlights of the DFCC Bank Debentures 2026:
- Issue Size: Up to 125,000,000 debentures.
- Maximum Raise: LKR 12,500,000,000 (Twelve Billion Five Hundred Million Sri Lankan Rupees).
- Par Value: LKR 100/- per debenture.
- Interest Rate: Fixed 13% p.a., payable annually (AER 13%).
- Tenure: 5 years (2026/2031).
- Key Features: Basel III compliant, Listed, Rated, Subordinated, Unsecured, Redeemable, with Non-viability Conversion feature.
Subscription and Management
The subscription list for this significant debenture issue is scheduled to open on 11th September 2026. This offers investors an opportunity to participate in strengthening one of Sri Lanka’s respected financial institutions while earning a competitive fixed return.
Capital Alliance Partners Limited has been appointed as the Managers to the Issue, bringing their expertise to facilitate this capital-raising exercise. S S P Corporate Services (Private) Limited will serve as the Registrars to the Issue, handling the logistical aspects of investor applications and record-keeping.
Access to Prospectus
Softcopies of the Prospectus detailing the full terms and conditions of the debenture issue were made available to Trading Participants today, 03rd September 2026. Prospective investors are advised to carefully read the prospectus before making any investment decisions.
This debenture issue is a strategic move by DFCC Bank to enhance its capital base, maintain regulatory compliance, and support its future growth initiatives, reinforcing its position in Sri Lanka’s dynamic financial sector.
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