LANKA RATING WITHDRAWS


Instrument Rating of

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LOLC Finance - LKR 05bn Unsecured Senior Redeemable Debentures

01-Sep-26

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Applicable Criteria

Methodology | Debt Instrument Rating | Aug-24

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Related Research

Sector Study | Capital Markets | Aug-25


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Analyst

Ruwanthi Sylva | ruwanthi@lra.com.lk
+94 114 500099 | www.lra.com.lk

PRESS
RELEASE

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This press release is being transmitted for the sole purpose of dissemination through print/electronic media. The press release may be used in full or in part without changing the meaning or context thereof with due credit to LRA

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Rating Type Debt Instrument
Current
(01-Sep-26) 		Previous
(02-Sep-25)
Action Withdraw Upgrade
Rating - A+
Outlook Stable
Rating Watch - -


Subsequent to the maturity and settlement of LKR 05bn Unsecured Senior Redeemable Debentures ("the Issue") of LOLC Finance PLC ("LOFC", "the Company", or "the Issuer"), Lanka Rating withdraws the debt instrument rating assigned to LKR 05bn Unsecured Senior Redeemable Debentures.

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About the Entity

LOFC is a Finance Company registered under Act No. 42 of 2011 and SEC registered margin provider. Listed on the CSE since 2011, it now trades on the Second Board due to non-compliance in the Minimum Public Holding (MPH). (Public holding – 3.69% as of 31st March 2026 vs. the required 10%) LOLC Ceylon Holdings (Pvt) Ltd is the largest shareholder (~96.29% as of 31st March 2026). Seven member Board includes six non-executive directors (four Independent) as of June 2026 and the Chief Executive Officer (CEO) Mr. D M D K Thilakaratne brings over 25 years of industry experience.


About the Instrument

The LKR~5bn unsecured senior redeemable debenture was issued by Commercial Leasing & Finance PLC (CLFPLC), which was transferred to LOFC following the merger. The Issue consisted of two types of debentures: Type A &, Type B. While Type A offered a fixed rate of ~10.5% paid bi-annually, the Type B provided a bi-annual payment with floating rate of a six-month treasury bill rate + 425bps, without a cap. The objective of the issue was refinancing of existing borrowings and financing of working capital requirements of CLFPLC. It carried a tenor of five years, and the principal was repaid at the end of the tenor. The instrument matured on September 23rd, 2025.

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