LB Finance lines up Rs. 20 bn debt issue

LB Finance PLC has received board approval to raise up to Rs. 20 billion through a listed debenture issue aimed at strengthening its funding base.

The company said it will issue 50 million listed, rated, senior, unsecured, redeemable debentures, with an option to issue a further 30 million in the event of an oversubscription, and an additional 20 million if demand persists, raising up to Rs. 10 billion in total.

In addition, LB Finance will issue 50 million listed, rated, subordinated, unsecured, redeemable debentures, with similar options for oversubscription, enabling the company to raise a further Rs. 10 billion.

The Central Bank’s Department of Supervision of Non-Bank Financial Institutions has approved the proposed debenture issue under the Finance Companies (Debt Instruments) Direction No. 03 of 2013, the company said in a stock exchange filing.

LB Finance plans to list the debentures on the Colombo Stock Exchange upon receiving the necessary regulatory approvals.