Lanka Rating Agency
03-Sep-24
Analyst
Nilum Liyana Arachchi
nilum@lra.com.lk
+94 114 500099
www.lra.com.lk
Applicable Criteria
- Methodology | Debt Instrument Rating | Jun-22
- Methodology | Non-Banking Finance Companies Rating | Jun-22
Related Research
- Sector Study | Leasing & Finance Companies | Aug-23
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Lanka Rating Withdraws Instrument Rating of LOLC Finance PLC - LKR 2.5bn Unsecured Subordinated Redeemable Debentures
| Rating Type | Debt Instrument | |
|
Current (03-Sep-24) |
Previous (16-Mar-23) |
|
| Action | Withdraw | Initial |
| Long Term | - | A- |
| Outlook | Stable | |
| Rating Watch | - | - |
With the maturity of the debt instrument, Lanka Rating withdraws the rating of LOLC Finance PLC - LKR 2.5bn Unsecured Subordinated Redeemable Debentures with immediate effect.
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About
the Entity
LOLC Finance PLC (LOFC or the Company) is registered as a Finance Company under the provisions of the Finance Business Act No. 42 of 2011. It is also registered under the Securities and Exchange Commission as a Market Intermediary to perform the functions of a Margin Provider. The largest shareholder of the Company is LOLC Ceylon Holdings PLC with an ownership of 90.96%. The Board of Directors has seven members, out of which six are Non-Executive Directors. The Chief Executive Officer, Mr. D M D K Thilakaratne has over 25 years of experience and is supported by a well-qualified and experienced management team.
About
the Instrument
LOLC Finance PLC issued an LKR 2.5bn unsecured subordinated redeemable debenture. The issue consists of two types of debentures. While Type A offers a fixed rate of 14.75% paid bi-annually, Type B is a zero-coupon debenture that is issued at LKR 49.83 and redeemable at LKR 100. The objective of the issue was to enhance the Tier II capital and accommodate further growth in loans and advances. It carries a tenor of five years, and the principal will be repaid at the end of the tenor.