LOLC to raise Rs. 2 b via unlisted debenture issue

LOLC Holdings PLC is to raise Rs. 2 billion via the issuance of 20 million unlisted, rated, unsecured, senior, redeemable debentures of Rs. 100 each.

The company has received the approval of the SEC.

The debentures are of three types. Type A is a five-year tenor with a fixed rate of 10.25% per annum payable annually. Type B is a five-year tenor with a fixed rate of 9.85% per annum payable quarterly, and Type C is a 10-year tenor with 12% per annum payable annually. 

LOLC said related parties of the company may subscribe to the issue subject to the company being in compliance with Section 9 of the listing rules of the CSE. The number of debentures to be allotted to related parties will not exceed 25% of the total value of the debentures issued. 

NDB Investment Bank is the manager and placement agent to the issue.

LOLC last raised Rs. 10 billion via a listed, rated, senior, unsecured, redeemable debenture issue in February.