CDB capital funds rise
Raises Rs 718 m from Rights Issue:
Citizens Development Business Finance PLC (CDB) capital funds have
risen to around Rs 1.8 billion subsequent to the CDB’s Rs 718 million
rights issue which was fully subscribed.
Mahesh Nanayakkara |
CEO Mahesh Nanayakkara said the Rights Issue successfully raised Rs
718,110,435. “This fresh capital infusion has substantially strengthened
our balance sheet while also supporting our rapidly expanding lease and
loan book portfolios,” he said. “Parallely it will help us further
accelerate our growth trajectory capitalizing on the massive
opportunities available for the financial services industry in post-war
Sri Lanka.” CDB affirmed plans to swell its current islandwide branch
network from 33 to 47 an effort to reach to a greater populace with its
vibrant bouquet of products and services.
“This also falls in line with the compliance requirements of Central
Bank of Sri Lanka,” Nanayakkara said.
Under the recently concluded Rights Issue, 6,614,175 new Ordinary
Voting Shares were issued at Rs 70 per share raising a total amount of
Rs 462,992,250 from voting rights and 5,669,293 new Ordinary Non-Voting
Shares were issued at Rs 45 per share, which was a new class of shares
raising a total amount of Rs 255,118,185.
For the Financial Year 2010/11 CDB recorded a net profit after tax
figure surpassing the rupees half a billion mark which was an over seven
fold increase compared to the corresponding previous financial year.
Total assets and revenue grew by 53 percent and 47 percent respectively.
Continuing its growth momentum, CDB recorded a 132 percent growth in
after tax profits for the First Quarter of FY2011/12. This reflects a
132 percent year on year (YoY) growth.
Revenue surpassed the rupees half a billion mark during the Q
recording a Rs 572.57 million. Figure, a 37 percent Year on year
increase. Net interest income grew by 60 percent to Rs 259.61 million.
During the quarter, CDB’s asset base grew 9.16 percent from the previous
financial year ended March 31, 2011, thus surpassing the Rs.11 billion.
mark.
The loan portfolio quality reflected in NPL stood at 3.19 percent and
has been benchmarked as among best in the industry.
The results posted for first quarter 2011/12 are seen as a
continuation of the exceptional financial results posted during the
previous financial year.
NDB Investment Bank acted as the Advisor to the Issue while Nithya
Partners acted as the Legal Advisors. (ss) |