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Rs. 1.5 Bn. Debenture Issue

Jul 9, 2011 3:24:18 PM - thesundayleader.lk

Left to right (back row): Nithya Partners’ Senior Associate Ms. Thanuja Jayawardene, LOLC Company Secretary Ms. Chrishanthi Emmanuel, First Capital Ltd. Corporate Finance Senior Manager Ms. Darshini de Silva, Capital Markets and Fund Management Head Chandima Desinghe and Bank of Ceylon (BoC) Chief Manager Investments W. Y. Bandula. Left to right (back row): BoC Investment Banking DGM P. A. Lionel, LOLC Group Managing Director/CEO Kapila Jayawardena, Group Treasurer Rohan Perera and Treasury Manager Sanjaya Kalidasa at the trustee deed signing.

Lanka ORIX Leasing Company PLC (LOLC) will be issuing Rs. 1.0 Bn worth of unsecured listed debentures and a further Rs. 500 Mn. Worth of unlisted debentures. Managers to the issue will be First Capital Ltd. and the trustee, Bank of Ceylon.
These senior, unsecured, redeemable, rated debentures will be for tenures of four and five years and will carry semi annual interest coupons of 11.70% and 11.90% respectively.
Fitch Ratings (Lanka) Ltd. have assigned them a national long term rating of A- (lka). “A-“ indicates LOLC’s high credit quality and strong financial commitments payment capacity.
The funds raised will be used to retire part of the company’s short-term debt, thereby better aligning LOLC’s assets and liabilities maturity profile-further strengthening the company’s balance sheet structure.
LOLC is also planning to issue listed debentures open to international investors as well. This will enable LOLC to access a wider funds’ pool, taking into consideration LOLC’s strong relationship with its foreign funding partners and investment funds.  LOLC Group intends to issue further listed debentures through its financial services subsidiaries in the future to enhance the Group’s lending portfolio’s growth. The Group’s total lending portfolio, comprising leases, loans, hire purchases, factoring and pawning, grew by 67% to Rs. 58.4 Bn year on year during the financial year ended March 31, 2011.