LB Finance to raise Rs. 20 billion through debentures; selling pressure brings down indices

LB Finance will issue a hundred million senior debentures and a hundred million subordinated debentures, to raise a total of Rs 20 billion, CSE sources said.

- BY HIRAN H SENEWIRATNE

50,000,000 listed, rated, senior, unsecured, redeemable debentures will be issued, the finance company sources said, with an option to issue a further 30,000,000 in the event of an oversubscription of the initial issue, and another 20,000,000 if there's an oversubscription of the second tranche.

Amid these developments, CSE indices at the outset yesterday picked up but during the latter part of the trading session selling pressure was noted and subsequently the All Share Price Index went down by 68.34 points while the S and P SL20 rose by 5.59 points. Turnover stood at Rs 7.95 billion with 17 crossings.