CDB raises Rs. 718 m via fully subscribed Rights Issue to support expansion

Tuesday, 23 August 2011 00:28 -     - {{hitsCtrl.values.hits}}

The Rights Issue of Citizens Development Business Finance PLC (CDB) was fully subscribed recently, raising Rs. 718.1 million.

This fresh capital infusion will substantially strengthen CDB’s balance sheet while permitting the company to add 14 new fully fledged branches in line with compliance requirements of Central Bank of Sri Lanka.

The capital raise via the Rights Issue will also support CDB’s rapidly expanding lease and loan book portfolios.

Under the recently-concluded Rights Issue, 6,614,175 new Ordinary Voting Shares were issued at Rs. 70 per share raising a total amount of Rs. 462,992,250 from voting rights and 5,669,293 new Ordinary Non Voting Shares were issued at Rs. 45 per share,  which was a new class of shares raising a total amount of Rs. 255,118,185.

For the FY2010/11 CDB recorded a net profit after tax figure surpassing the rupees half a billion mark which was an over 7 fold increase compared to the corresponding previous financial year.

Total assets and revenue grew by 53% and 47% respectively. Continuing its growth momentum, CDB recorded a 132% growth in after tax profits for the First Quarter of FY2011/12.  

CDB intends to aggressively expand its distribution network while further accelerating its growth trajectory capitalising on the immense opportunities available for the financial services industry in post-war Sri Lanka. NDB Investment Bank acted as the Advisor to the Issue while Nithya Partners acted as the Legal Advisors.