LB Finance Rs.2bn debenture snapped up

20 November 2013 04:20 am Views - 3252

LB Finance PLC, a licensed finance company yesterday said its Rs.2 billion unsecured debenture issue was oversubscribed the opening day.

The issue had two tranches—an initial tranche of Rs.1 billion with an option to increase up to Rs.2 billion in case of an oversubscription.

The 5-year debentures were priced at Rs.100 each and categorized under three types with a maximum fixed rate of 15 percent.

LB Finance has a company rating of A- with a “Stable Outlook” from RAM Ratings. The debt issue was rated at one notch below at BBB+.

The debenture was aimed at improving the firm’s capital and liquidity positions and discharging of short-term borrowings.

L B Finance PLC is currently held by Vallibel One Group, a diversified holding company controlled by Dhammika Perera. Vallibel One has strategic stakes in financial services, tile and sanitary ware manufacturing, and leisure industries.