LB finance Rs.450 mn debenture over

LB Finance outdid itself when its 2008 debenture issue for Rs.450 million was oversubscribed. The issue closed on September 11 with investors seizing the opportunity to share in the Company’s success.

The company offered 250,000 unsecured subordinated redeemable debentured of Rs.1000 each to the value of Rs.250 million, extendable up to Rs.450 million in the event of over subscription.

“The company’s inaugural debenture issue five years ago was an immense success and the overwhelming response to the second issue reaffirms the confidence that investors have in us,” Managing Director of LB Finance, Sumith Adhihetti said. “We have always strived to reward customer-confidence with the most competitive of interest rates, and maintained the same practice with regard to our debentures,” he said.

Funds raised would go into expanding the capital base of the company in keeping with the capital adequacy standards of the Central Bank of Sri Lanka and also to mobilize medium term funds to match the medium to long-term lending of the company. Investor had a choice of four debenture options with LB Finance offering 21% per annum interest paid monthly, 24% per annum interest paid annually, a variable interest paid quarterly as well as annually. The bulk of the investors who applied for the issue had opted for the first two options.

In 2008, the company recorded a phenomenal growth of over 50% in its deposit base, crossing the Rs.9 billion mark. Incorporated in 1971, the trail-blazing finance company has for almost four decades provided prudent investors with financial services that move with the times and has today emerged amongst the top three financial entities in the country, continuing to hold-fast to its momentum of unwavering growth.

The company today operates a growing network of 15 branches throughout the island including its pawn broking centers.

LB Finance has 24 pawning centers in addition to its branches. LB Finance offers cutting-edge solutions through services such as acceptance of deposits, leasing, hire purchase, consumer durable financing, mortgage loans and other credit facilities.