LOLC Finance to raise Rs. 3.5 b via listed debentures

LOLC Finance Plc will be raising Rs. 3.5 billion via the issuance of a listed two-type debenture.

The funds raised through the debenture issue will be utilised to finance expansion by increasing the lending portfolio (including microfinance) of the company within 12 months from the date of allotment. 

It will offer 25 million Subordinated, Unsecured, Listed, Redeemable, Rated, Five Year (2018/2023) debentures at Rs. 100 each and a further 10 million debentures in the event the original amount is oversubscribed. 

The two debentures issue prices are Type A Rs. 100 and Type B Rs. 49.83.

In the event of the debenture issue being fully subscribed, the maximum amount of Type A and Type B debentures issued are as follows: Type A debentures – up to a maximum of 35 million debentures. Type B debentures – up to a maximum of 70,238,811 debentures.

Interest rates are Type A: Fixed rate: 14.75% p.a. payable semi-annually (AER: 15.29%) and Type B: annual compounding rate on the issue price payable on the date of redemption at an AER of 14.95%.

The issue is available for subscription whilst its official opening is 26 July.

Joint managers to the issue are Capital Alliance Partners Ltd. and NDB Investment Bank Ltd.