LB Finance to raise Rs. 3 b via debenture

LB Finance is to raise Rs. 3 billion via a listed debenture, an approval for which in principle was announced by the Colombo Stock Exchange. 

LB Finance will issue 20 million debentures at Rs. 100 each with an option to offer a further 10 million debentures at the same price in the event of an oversubscription of the initial figure.

The issue will officially open on 4 December but was available for subscription from yesterday. Managers to the issue were Capital Alliance Partners Ltd.

Fitch Ratings has assigned proposed senior unsecured and subordinated debentures final National Long-Term Ratings of ‘A-(lka)’ and ‘BBB+(lka)’ respectively.

LB expects to use the proceeds to fund loan book growth, reduce asset and liability maturity mismatches and improve its Tier II capital base through the subordinated debt.