Fully subscribed Rights Issue of Prime Finance bolsters its core capital

Thursday, 21 January 2021 00:00 - - {{hitsCtrl.values.hits}}

Prime Group Chairman Brahmanage Premalal

Prime Finance CEO Maduranga Heenkenda

Prime Finance PLC, a member of the Prime Group, announced that it raised capital of Rs. 526.68 million, following the successful conclusion of its fully subscribed Rights Issue in December 2020.

The Company is assigned with an issuer rating of [SL] BBB- (Pronounced SL triple B minus) with a stable outlook by ICRA Lanka Limited, subsidiary of ICRA Limited, a group Company of Moody’s Investors Service.

Prime Finance is a member of Prime Group, the market leader in Real Estate Business in Sri Lanka, who was awarded the ‘Best Property Developer in 2018’ at the Property Guru Asia Property Awards in 2018.

Prime Finance went for a Rights Issue of 41.8 Million ordinary shares in the proportion of nineteen new ordinary shares for every thirty-six ordinary shares of the Company at an issue price of Rs. 12.60/- per share amounting to Rs. 526.68 Million. The objectives of the said Rights Issue were to ensure compliance with Core Capital requirements stipulated by the Central Bank of Sri Lanka (CBSL) as well as the Minimum Public Holding requirements set out in the Listing Rules of the Colombo Stock Exchange (CSE).

With the conclusion of the said Rights Issue, the Core Capital of the Company now exceed Rs. 2.1 billion, well above the stipulated regulatory minimums. Meanwhile, Minimum Public Holding requirement is increased to 11.86%.

With the said capital infusion, Prime Finance is now a well-capitalised Finance Company in terms of Finance Business Act Guidelines No. 01 of 2020, which was recently issued by the CBSL.

Prime Finance is a Licensed Finance Company by the Monetary Board of CBSL which provides personal and business finance solutions. The Company offers fixed deposits, savings deposits, leasing, vehicle loans, mortgage loans and real estate development and related services.