Asia Asset Finance PLC was in a successful drive of raising Rs. 2 billion during the last quarter (q2) 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
Further, the recent Preference share issue too was oversubscribed as a testimony of the investor confidence and trust built upon the company, it added.
The company is poised to grow its asset base and the Debenture Issue will support the growth process and the preference issue meets the requirement for additional capital requirements.
The funding activities of AAF are further diversified with the introduction of its successful preference share issue.
The funding portfolio now consists of Fixed Deposits, Preference Shares, Debentures, Secularisation 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 approximately and the remainder from Secularisation and Bank Borrowings during the quarter.
“The strong governance framework backed by a robust business plan for post Covid has driven the company operations into a very stable position with over 80 percent of our portfolio being fully secured through value appreciating assets, the Chief Executive Officer (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, the 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 the Joint managers to the last Debenture issue Capital Alliance Partners Ltd and First Capital Ltd. He disclosed.