Friday Nov 15, 2024
Friday Nov 15, 2024
Wednesday, 29 May 2013 00:13 - - {{hitsCtrl.values.hits}}
Softlogic Finance announced the conclusion of its latest securitisation transaction that will enable the company to access funding of Rs. 500 million to grow and develop the business of the company for the current quarter.
The transaction, signed recently has drawn considerable interest and full subscription from a number of diverse investors that include commercial banks, development banks and other institutional investors.
The tenor of the transaction was for two years and will enable the company to enhance lending volumes in the initial part of the year and potentially gain by re-financing with lower interest rates towards the latter part of the period. The trustee to the transaction was Deutsche Bank AG and lawyers to the issue were Nithya Partners. The transaction was arranged by Liege Capital.
“We are pleased to have successfully completed this financing transaction which solidifies our presence as an active capital markets player,” Softlogic Finance Director/Chief Executive Nalin Wijekoon said. The securitisation by Softlogic Finance was developed as a stable funding source to push its aggressive business plans with this transaction being the 20th securitisation completed by the company.
The total assets of the company increased by 31%, whilst loan volume increased by 22% for the financial year ending March 2013. Deposit growth was amongst the highest in the industry with customer deposits increasing by 48% during the financial year. Softlogic Finance with an asset base that exceeds Rs. 13 billion provides finance leasing and hire purchase facilities and accepts fixed deposits and savings, personal finance, business finance and gold loans through a network of 17 branches that are located all round Sri Lanka, supplemented with 24 gold loan centres and marketing offices in Softlogic retail showrooms.
The company recently signed a US$ 10 million facility with the Dutch Development Bank FMO and is only the third non-banking financial institution in the country to attract foreign funding. Softlogic Finance is part of the Softlogic Group that is one of Sri Lanka’s most diversified and fastest-growing conglomerates, with interests in healthcare, retail, ICT, leisure, automobiles and financial services. Softlogic Finance PLC is rated BBB-/P3 rating from RAM Rating, with a stable outlook.
Softlogic Finance PLC is a licensed finance company under the Finance Business Act No. 42 of 2011 as well as a specialised leasing company, licensed by the Central Bank of Sri Lanka under the Finance Leasing Act No. 56 of 2000. Further, the Company became a public listed company by way of offer for sale of shares in December 2008.
