Sri Lanka’s LB Finance to sell Rs2.0bn in debt

Nov 05, 2013 (LBO) – Sri Lanka’s LB Finance Plc, is planning to sell 2.0 billion rupees of listed debt, the Colombo Stock Exchange said. The CSE said it had approved an application by LF Finance to offer 10 million debentures of 100 rupees each and a further 10 million if the first tranche is oversubscribed.

Subscriptions will open on November 19 with Merchant Bank of Sri Lanka is managing the debt issue.

The debt is subordinated, indicating that depositors and other senior debt holders have prior claim in the event of liquidation.

There has been a rush to sell listed debentures because they were made tax free this year.