LOLC Ceylon Rs. 1 b debenture oversubscribed

Friday, 1 October 2021 00:00 - - {{hitsCtrl.values.hits}}

LOLC Ceylon Holdings Ltd.’s (LOCH) Rs. 1 billion listed debenture issue has been oversubscribed and closed on Wednesday, the official opening day.

LOCH issued 10 million Senior Listed Redeemable Rated Guaranteed two-year debentures of Rs. 100 each.

Secretaries to the issue SSP Corporate Services stated the issue received applications for over Rs. 1 billion and was closed on Wednesday evening as per the prospectus. It said the basis of allotment will be notified later.

The debentures offer 9.50% per annum payable annually. Minimum subscription was Rs. 10,000. Managers to the issue was Capital Alliance Partners Ltd.

LOCH has been created by LOLC to be the vehicle for large scale foreign investors to acquire minority stake in the finance company the parent owns.

The funds raised through the Debenture Issue are to partly finance the acquisition of LOLC Holding’s 55.55% equity stake in LOLC Development Finance (NIFL).

Post-listing of LOCH, the shares owned by LOLC in LOLC Finance PLC (LOFC) amounting to 44.79%, and shares owned in Commercial Leasing and Finance PLC (CLC) amounting to 98.92% will be transferred to LOCH, subject to receipt of relevant regulatory approvals (as applicable). In principle, approval from SEC and No Objection from Central Bank have been obtained for the share transfers of LOLC.