Asian Finance floats Rs 150 m debenture issue

by Ramani Kangaraarachchi

Asian Finance Limited, a member of Ceylinco Consolidated announced a debenture issue of Rs 150m, to raise funds mainly to support the expansion of the real estate operations in Colombo city limits. The redeemable five-year debentures of Rs.100 each would give a fixed interest rate of 14per cent annually from the date of allotment until the expiry of five years, to their type "A': buyers and 13 per cent to the type 'B' buyers payable monthly on the principal sum of the debenture.

This was announced by Executive Director Asian Finance W.K.Galagoda recently. The issue opened on June 1 and the closing date would be on the day the issue is fully subscribed for or January 31, 2006, Galagoda said. The minimum subscription is Rs 100,000 and applications in excess of the minimum subscription shall be in multiples of Rs10,000. The debentures are unquoted, unsecured and subordinated.

Increasing long-term fund base of the company and remedying any funding mismatches, making an opportunity to the public to participate in an alternate fixed income investment and contributing to the development of the debt market of Sri Lanka by educating selected members of the public on the advantages and disadvantages and encouraging them to invest in debentures as a fixed income investment are the other objectives of the debenture issue.

Asian Finance Ltd was incorporated as a public limited liability company in 1984 and commenced business in 1985. It is a progressive and innovative financial service provider with a proven track record for innovation and excellence and one of the few companies to receive approval from the Central Bank in the last ten years.

The future strategic focus would be in diversifying the sources of funding expanding the reach of the organisation in terms of customers and fund dispersion, and expanding the customer base through innovative product concepts. The net profit for 2004/2005 of the company is Rs. 34.4 million.

Deputy Chairman, W.G.B.M. Ranaweera, Deputy Executive Director V.K.Piyaratne and Head of Real Estate Udul Weerasuriya were also present.