Lanka Rating Agency
29-Jul-24
Analyst
Gayani Randima Ariyawansa
gayani@lra.com.lk
+94 114 500099
www.lra.com.lk
Applicable Criteria
- Methodology | Debt Instrument Rating | Jun-22
Related Research
- Sector Study | Holding Company | Mar-24
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LRA Withdraws the Preliminary Debt Instrument Rating of LOLC Holdings PLC – LKR8bln Listed, Rated, Senior, Unsecured, Redeemable Debenture
| Rating Type | Debt Instrument | |
|
Current (29-Jul-24) |
Previous (20-Nov-23) |
|
| Action | Withdraw | Preliminary |
| Long Term | - | A |
| Outlook | Stable | Stable |
| Rating Watch | - | Yes |
Subsequent to the management's decision to not proceed with the issuance of the debt instrument, LRA withdraws the Preliminary Debt Instrument Rating of LOLC Holdings PLC – LKR8bln Listed, Rated, Senior, Unsecured, Redeemable Debenture with immediate effect.
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About
the Entity
LOLC Holdings PLC ("the HoldCo") is a Public Quoted Company incorporated in 1980. The HoldCo became the Holding Company of the Group in 2011. The largest shareholding of the HoldCo lies with Mr. Ishara Nanayakkara with an ownership of around 80%. Mr. Nanayakkara is one of Sri Lanka’s leading entrepreneurs coming from a strong business background.
About
the Instrument
LOLC Holdings PLC is in the process of issuing LKR8bln Listed, Rated, Senior, Unsecured, Redeemable Debenture. The initial issue would be LKR5bln with an option to issue up to a further LKR3bln in the event of an over subscription. The debenture will span up to 7 years. The funds generated from the Debenture issue will be utilized for refinancing of short-term debt facilities as well as to strengthen the company’s short term maturity buckets.