The diversified conglomerate, Lanka Orix Leasing Company PLC (LOLC) yesterday told its Rs.5 billion debenture issue was oversubscribed on the opening day. LOLC issued 50 million debentures at Rs.100 each to fund its massive lending drive. The group is currently in an aggressive lending push as it expanded its loan book by as much as Rs.25.1 billion during the first six months ended September (1H15). During the 1H15, the group’s lending portfolio grew by 41 percent Yearon-Year (YoY) and leasing and hire purchase portfolio grew by 8 percent YoY to Rs.76.5 billion and Rs. 39.2 billion respectively.
As a result, the group’s September quarter (2Q15) net profits soared by a staggering 261.4 percent to Rs. 1.59 billion. LOLC will pay 9 percent interest rate per annum payable quarterly for the debenture, and the issue received a rating of A- by ICRA Lanka Limited.Year-to-date a total of 12 companies have raised over Rs.30 billion via debentures. The company stated that the basis of allotment would be notified in due course.