Sri Lanka’s LOLC Holdings sells Rs10bn in 5 and 10 year bonds

ECONOMYNEXT – Sri Lanka’s LOLC Holdings said it had received over 10 billion rupees of applications for listed debentures and the issue has been closed.

Managers to the issued, NDB Investment Bank said the debenture sale was the largest by a non-bank issuer.

LOLC Holdings offered three types of debentures of 5 and 10 years.

Type A 5-year bonds would pay a fixed coupon rate of 10.25 percent at the end of the year.

Type B 5-year bonds would pay 9.85 percent quarterly (10.22 annual effective rate)

Type C 10-year bonds would pay 12 percent at the end of the year.

LOLC Holdings said the proceeds would be used to settle a part of 31.4 billion rupees of short term bank loans.

The joint placement agents were NDB Investment Bank and People’s Bank Investment Banking Unit. (Colombo/Feb18/2021)

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