LOLC Finance gets CSE approval for Rs. 15 b debenture issue

Thursday, 27 November 2025 05:51 - - {{hitsCtrl.values.hits}}

The Colombo Stock Exchange yesterday granted approval to list LOLC Finance’s planned Rs. 15 billion debenture issue which opens on 2 December.

The Central Bank had already approved the issuance of up to 150 million listed, rated, senior, unsecured, redeemable five-year debentures.

The company will issue 100 million debentures at Rs. 100 each, with the option to offer a further 50 million in the event of an oversubscription, allowing the issuer to raise up to Rs. 15 billion. This is smaller than the Rs. 20 billion issue the company was seeking approval for in September.

The issue comprises three instruments: a five-year fixed-rate debenture at 11.25% payable annually (AER 11.25%); a five-year fixed-rate option at 10.95% payable semi-annually (AER 11.25%); and a floating-rate debenture priced at the 364-day Treasury Bill rate plus 2.50% payable annually. The subscription list opens on 2 December 2025.

The issue comes on the back of strong earnings. LOLC Finance posted an after-tax profit of Rs. 8.8 billion for the September 2025 quarter, a 106% year-on-year increase, while nine-month profit rose 72% to Rs. 14 billion. Total assets reached Rs. 466 billion and retained earnings were close to Rs. 82 billion. In its 2024/25 annual report, the company said it is laying the groundwork for growth through strategic partnerships, product expansion and wider distribution channels.