HNB Finance poised for resilient growth with successful completion of CSE listing

HNB Finance Ltd. (HNBF), a leading Sri Lankan financial services provider, announced that the company’s shares are now listed on the Colombo Stock Exchange under the Diri-Savi Board. 

HNB Finance Chairman and HNB MD and CEO Jonathan Alles

HNB Finance MD and CEO Chaminda Prabhath

The first to be listed in over two years, HNB Finance’s Initial Public Offering (IPO) via an Offer for Sale on the Colombo Stock Exchange, was oversubscribed by a significant 32% on its opening day in February, a figure which indicates a high level of investor confidence.

Commenting on the recent listing, HNB Finance Chairman Jonathan Alles said: “The successful listing of HNB Finance on the CSE is the culmination of several years of focused effort to bolster our internal capacity while driving innovation in our product portfolio, and supported by resilient and trusting relationships with a large and growing customer base. 

“While globally and nationally, we must now grapple with the emerging challenges of a post-COVID landscape, we remain confident in our ability to reach out to customers and provide them with essential financial services that will play a vital role in reinvigorating our economy from the grassroots upwards. 

“The highly positive reaction that we have received from investors through HNBF’s timely listing on the CSE is ample testament to these achievements in driving a transformational, technology-driven business model. As ever, we remain determined to further consolidate on this success and continue generating value for all stakeholders.”        

With the listing, HNB Finance is now poised to power ahead with a series of strategic investments aimed at re-engineering process architecture to better drive front-end operational efficiencies Similarly, the company will also be strengthening core IT systems infrastructure and optimising resources for business growth, in order to enable business continuity, improve information security and reduce cost.

HNB Finance Managing Director/CEO Chaminda Prabhath commented: “We are delighted to initiate trading on the Colombo Stock Exchange, especially after our initial public offering was oversubscribed on its opening day.”

“As we welcome our new stakeholders, our confidence in HNBF’s strong positioning has also grown and we anticipate significant and sustainable growth despite a uniquely challenging operating environment. As a pioneer in microfinance in Sri Lanka, we are currently investing heavily in solutions that will enhance our service standards and create value in the current global climate through digitisation, development of alternate channels and process re-engineering.” 

“The company is also keenly focused on addressing asset quality, strengthening risk and governance frameworks, and – most importantly – building a robust and experienced team who can bring to life HNBF’s progressive vision to be a leader in innovative, technology-driven financial solutions,” he added.  

Over the recent past, the company has also focused heavily on developing digital channels – from internet to mobile platforms and tab banking – in order to rapidly expand its reach in a cost-effective and efficient manner, with a special emphasis on digital mediums.

With a Fitch rating of ‘A’ (lka) under its belt, HNB Finance has re-energised its business operations, from a streamlined workflow to efficient people management. The company has also successfully introduced an array of new financial products to a highly-researched target market and made a significant impact through rebranding as well as strategic investments in technology and innovation.

HNB Finance is a subsidiary of Hatton National Bank Plc, which owns 51% of its Ordinary Voting Shares, while Prime Lands Ltd. will own 38.86% of the Ordinary Voting Shares after the completion of the IPO. 

In 2011, Prime Lands acquired a major stake of the finance company through a restructuring plan and was then rebranded Prime Grameen Microfinance Ltd. Backed by over 25 years of experience, Prime Lands is today one of largest pioneering forces in the Sri Lankan construction and real estate industry with numerous local and international accolades to its name. 

The company’s strong business acumen coupled with prudent management tactics turned around the company’s performance. Within two short years, Prime Grameen Microfinance Ltd. reached a commendable position as a profit-making financial company.