Colombo, 18 September 2026 – DFCC Bank PLC, one of Sri Lanka’s premier financial institutions, has officially released the basis of allotment for its recently concluded LKR 12.5 billion Basel III Compliant, Tier 2, Unsecured Subordinated Redeemable Debentures. The announcement, made today via the Colombo Stock Exchange (CSE), provides crucial clarity to investors regarding the distribution of the 125 million debentures issued.
The highly anticipated debenture issue aimed to raise a maximum amount of Twelve Billion Five Hundred Million Sri Lankan Rupees (LKR 12,500,000,000/-) to strengthen the bank’s capital base and support its strategic growth initiatives in the evolving financial landscape.
Understanding the DFCC Debenture Issue 2026
The issue comprised up to 125,000,000 Basel III Compliant, Tier 2, Listed, Rated, Unsecured, Subordinated, Redeemable 5 Year (2026/2031) Debentures, each with a par value of LKR 100/-. A key feature of these debentures is their Non-Viability Conversion Feature, aligning with contemporary regulatory standards for financial stability.
Detailed Basis of Allotment for Qualified Investors
According to the official communication from S S P Corporate Services (Private) Limited, the Registar to the Issue, on behalf of DFCC Bank PLC, the allotment for Type A Debentures is structured as follows:
- Preferential Allotment: 95,000,000 Debentures have been earmarked for allotment to identified Qualified Investors, in line with the provisions of Section 6.7 of the Prospectus dated 3rd September 2026.
- Other Qualified Investors – Applications up to 100,000 Debentures: Investors who submitted applications for up to and including 100,000 Debentures will be granted a 100% allotment of their applied amount.
- Other Qualified Investors – Applications exceeding 100,000 Debentures: For those Qualified Investors who applied for more than 100,000 Debentures, the allotment will comprise 100,000 Debentures plus an additional 50.4979% of the balance application amount that exceeded the initial 100,000 Debentures. This supplementary allotment will be rounded to the nearest 100 Debentures.
Adjustments and Final Allotment Date
The announcement further clarifies that any discrepancies arising from the realization of cheques, verification processes with the Central Depository System (CDS), or adjustments due to rounding will be managed. These adjustments will primarily affect the largest Debenture holders whose application amounts were not fully met.
Investors can mark their calendars as the official date of allotment for these debentures is scheduled for Monday, 21st September 2026.
Strategic Impact for DFCC Bank
The successful closure of this significant debenture issue and the prompt announcement of its allotment basis reflect DFCC Bank’s robust market standing and its strategic proactive measures to adhere to regulatory capital requirements. This capital infusion is instrumental in strengthening the bank’s balance sheet, enabling it to pursue its growth objectives, expand its service offerings, and continue its vital role in contributing to Sri Lanka’s economic progress and financial sector stability.
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