Kanrich Finance raises Rs. 750 m from capital market to expand micro finance operations
Friday, 24 October 2014 00:19
Kanrich Finance raised Rs. 750 million to fund its micro finance operations through an issue of asset receivable backed trust certificates.
Kanrich’s micro finance portfolio of over Rs. 5 billion generates substantial amount of cash receivables on a weekly basis, enabling the company to issue asset receivable backed trust certificates.
Director/CEO Shiran Weerasinghe stated that securitising a part of the portfolio gave the company a path to broad base its funding sources and added that the objective of the transaction is to further expand the operations whilst effectively managing the portfolio balance.
First Capital Ltd. and the Bank of Ceylon acted as the Manager of the facility and the Trustee respectively to the transaction.
Weerasinghe added: “We appreciate the confidence placed on us by the managers, trustees and the pool of investors and trust that we will be able to raise further funds from the market based on our recent performances and keep expanding the company.”
Kanrich’s monthly lending that was under Rs. 50 million at the beginning of 2012 and increased to Rs. 1 billion a month within three years, which resulted in its interest income increasing to Rs. 1,296 million in FY 2013/14 from Rs. 175 million in FY2011/12. The total income increased from Rs. 204 million in FY2011/12 to Rs. 1,441 million by FY 2013/14 recording a growth of 604% in two years.