Thursday Nov 14, 2024
Thursday Nov 14, 2024
Friday, 7 October 2022 00:21 - - {{hitsCtrl.values.hits}}
 |
| Chairman V.R. Ramanan |
 |
| CEO C.Y.B. Weerakoon
|
Weathering all macroeconomic challenges Nation Lanka Finance PLC (NLF) continues to demonstrate its resilience and commitment to stakeholders whilst successfully raising Rs. 1.1 billion in equity capital through the recently concluded Rights Issue.
This was possible due to the confidence placed by major shareholders and strategic investors who perceive greater potential in the company and its sustainability.
New capital was required to maintain growth and meet regulatory requirements of NLF, enjoying a high-quality asset base of over Rs. 8.1 billion. Prior to the most recent rights issue, NLF had raised a total of Rs. 1.9 billion via three rights issues in 2011, 2012 and 2018 respectively.
Operating with integrity the company is proud to be one of the very few NBFIs who honoured all liabilities and repaid Rs. 1.5 billion to fully settle the legacy depositors affected from the Ceylinco Group troubles over a decade ago.
The successful capital raising is just a part of the medium-term strategic plan pursued by NLF whilst the company has also embarked on a merger with another financial institution which would bolster the balance sheet and create stability during these turbulent times.
The company is conducting extensive discussions on the matter and sought requisite regulatory approvals for the same under the Consolidation Master Plan of the Central Bank of Sri Lanka.
The proposed merger, coupled with the capital infusion which has taken place in NLF, will make vast improvements in the regulatory, operational, and business aspects from its present stand-alone 25 branch basis to becoming the proposed merged entity with 50 branches, and the successful implementation of this proposal will be a viable measure to build up a stronger, liquid and a resilient entity capable of meeting future challenges in the business environment.
In a statement NLF said it extends gratitude to major shareholders and the strategic investors who placed their trust upon the Company while appreciating all its deposit customers who demonstrated their confidence in the stability of the company.
The appreciation extends to the regulators, Central Bank of Sri Lanka, the Securities and Exchange Commission and the Colombo Stock Exchange for their guidance and assistance in this endeavour while thanking the external auditors, KMPG, corporate secretaries, Corporate Arcade for the professional support and Nation Lanka Equities Ltd. for the professional advisory services.
