Asia Asset Finance redefines financial innovation with Sri Lanka’s first digital debenture, fully subscribed in one day

Asia Asset Finance PLC (AAF), a trusted financial institution with a 54-year legacy, has made history by launching Sri Lanka’s first-ever digitally subscribed debenture issue. This ground-breaking initiative reflects AAF’s commitment to innovation, customer convenience, and driving financial growth. By introducing a digital subscription platform, AAF has opened a new chapter in Sri Lanka’s financial markets, empowering investors and setting a benchmark for the industry.

The Debenture Issue 2024 was fully subscribed on the first day itself, marking a significant milestone in Sri Lanka’s financial sector and offering unparalleled convenience and accessibility to investors. With an initial issue size of Rs. 1 billion and an option to raise an additional Rs. 1 billion in case of oversubscription, the debenture totals up to Rs. 2 billion. These Listed Rated Unsecured Senior Redeemable Debentures were available with two tenure options: a 3-year period maturing in 2027 and a 5-year period maturing in 2029.

The funds raised through this issue will be directed towards expanding AAF’s loan portfolio, reinforcing the company’s mission to empower businesses and individuals across Sri Lanka. Asia Asset Finance PLC is backed by an entity rating of “A+(lka)” / Stable and an issue rating of “A+(lka)” from Fitch Ratings Lanka Limited. The debenture reflects AAF’s financial strength and reliability, offering investors a secure and attractive investment opportunity.

The Debenture Issue 2024 is not only about financial innovation but also about accessibility and inclusivity. AAF has introduced Sri Lanka’s first digitally subscribed debenture issue, enabling investors to participate via the CAL Web Portal, managed by Capital Alliance Partners Limited.

This revolutionary approach was met with an overwhelming response, with the majority of the issue subscribed by retail investors through the digital platform. By simplifying the subscription process, AAF has ensured a seamless, transparent, and efficient experience for all stakeholders, showcasing the trust and confidence that retail investors have placed in the company.

The success of this debenture issue is a testament to AAF’s unwavering dedication to growth and innovation. Speaking about this ground-breaking initiative, Asia Asset Finance PLC CEO Rajiv Gunawardana, remarked:

“This debenture issue represents a bold step into the future of financial services in Sri Lanka. By introducing digital subscriptions, we have empowered retail investors, making the process seamless and accessible. The overwhelming response reflects the trust our stakeholders place in Asia Asset Finance and our ability to drive innovation while delivering value.” The Debenture Issue 2024 by AAF sets itself apart by combining innovation with financial stability. It offers competitive interest rates over two tenure options, backed by strong credit ratings from Fitch Ratings Lanka Ltd. The funds raised will fuel AAF’s strategic growth plans, allowing the company to expand its loan portfolio and further its mission of supporting communities and businesses.

Moreover, the digital subscription platform has made the investment process more accessible to retail investors, underscoring AAF’s customer-first approach and commitment to inclusivity. Commenting on the successful debenture issue, the DGM 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. Asia Asset Finance PLC’s Debenture Issue 2024 is a landmark achievement, not just for the company but for Sri Lanka’s financial sector. As the first digitally subscribed debenture issue in the country, this reflects AAF’s role as a pioneer in financial innovation and therefore It has enabled Asia Asset Finance to issue up to a further ten million of said Debentures at the discretion of the company to raise Rs. 2 billion which was made possible with the support given by one of the leading giant in the investment banking sector, who were the managers to the issue.”

The Debenture Issue was managed by Capital Alliance Partners Ltd., a renowned investment banking and advisory firm in Sri Lanka. Their expertise and innovative approach played a key role in ensuring the success of the issue, particularly as it marked the country’s first digitally subscribed debenture. Capital Alliance Partners Ltd. facilitated the seamless execution of the process, providing investors with an efficient and reliable platform for participation.

With its Fitch A+ rating, backing from global financial giant Muthoot Finance, and a strong legacy of trust and a network of 100 branches, AAF continues to redefine the financial landscape. The success of this Debenture issue underscores the company’s ability to deliver value, inspire confidence, and drive growth in a dynamic market. Investors now have the opportunity to participate in this historic initiative and join a journey of trust, transparency, and progress. With the funds raised, AAF is poised to strengthen its loan portfolio and continue empowering businesses and individuals across Sri Lanka.

This is not just an investment — it’s a step towards a brighter financial future, led by Asia Asset Finance PLC.