Asia Asset Finance PLC to raise Rs. 2 b

Asia Asset Finance PLC is raising Rs. 2 billion during the 4th quarter 2021/ 22 while gaining Rs. 1 billion recently from the market through a listed debenture issue, a press release of the company revealed.

This was the second successful Debenture Issue by the company. Both Debenture Issues were oversubscribed reflecting the trust and the confidence placed on the company by the stakeholders, the release said.

The funding portfolio now consists of Fixed Deposits, Preference Shares, Debentures, Securitisations and Bank Borrowings, senior officials of Asia Asset Finance said.

The majority of funding was from Debentures and Preference shares amounting to Rs 1.4 billion approximatel y and t he re m a i n d e r f rom Securitisations and bank borrowings during the quarter.

“The strong governance framework backed by a robust business plan for post COVID-19 has driven the company operations into a very stable position with over 80 per cent of our portfolio being fully secured through value appreciating assets,” the CEO of the company Rajiv Gunawardena said.

The company had an initial issue of five million debentures by way of issuing Secured ( Asset Backed), Listed, Redeemable, Rated three-year (2021/2024) and five-year (2021/2026) debentures at a par value of Rs. 100 each.

Commenting on the successful debenture issue, Head of Treasury Praveen Peiris stated, “The success of this debenture issue is a testament to the trust that the investors have in the strength and stability of Asia Asset as well as its capabilities as a leading finance company.

It has enabled Asia Asset Finance to issue up to a further five million of said Debentures at the discretion of the company to raise Rs.1 billion which was made possible with the support given by the Joint managers to the last Debenture issue - Capital Alliance Partners Ltd and First Capital Ltd, he disclosed.