Melsta Regal Finance boosts capital by Rs. 650 m to Rs. 1.3 b

Friday, 13 June 2014 01:48 -     - {{hitsCtrl.values.hits}}

Says company on a journey of growth and stability Melsta Regal Finance Ltd. recently enhanced its stated capital to Rs. 1.3 billion through an additional capital infusion of Rs. 650 million in the form of a rights issue. Through this capital infusion by Melstacorp Ltd., Melsta Regal Finance complies with the core capital requirement, under the new regulations enforced by the Central Bank of Sri Lanka (CBSL). This move is in line with the CBSL’s revised regulations to stabilise the non-bank financial institutions of the country to achieve consolidation of the financial sector. Announcing the rationale for the capital infusion, Melsta Regal Finance Ltd. Chairman Amitha Gooneratne highlighted that the infusion of capital would be an impetus for the company’s future expansion plans. “This capital infusion is a proactive move, through which we will be compliant with the Central Bank’s capital adequacy requirements till January 2016. This signifies our commitment and support to the Central Bank’s consolidation process. Further, we could maintain the company’s growth momentum achieved since the inception.” He further stated that the capital infusion would facilitate Melsta Regal to expand its branch network and promote financial inclusivity amongst a wider customer spectrum. He reiterated that Melstacorp Ltd. is committed to infuse additional capital for Melsta Regal Finance as and when required for the purpose of growth and the stability of the company. Gooneratne also expressed that the enhanced capital will facilitate to attract medium to large scale clients since the company could extend larger facilities. Commenting on the company’s continuous growth trajectory he further highlighted that the company’s growth levels have been achieved in cognisance of prudent credit measures and corporate governance. “This has been recognised by Fitch Ratings Lanka Ltd., which has re-affirmed our rating of A+(lka) for the second consecutive time.” Elaborating further, Gooneratne highlighted: “We believe that Melsta Regal has enormous potential to leverage synergistic alliance between group companies and provide a platform to introduce innovative financial solutions. Presently, we have introduced an innovative working capital solution where customers are able to obtain the benefit of our logistics expertise available within our Group through the 360 degree trade finance solution.” The company, which commenced operations in November 2012, has maintained a continuous growth trajectory and has carved a niche in providing comprehensive working capital financing solutions. The company also offers a wide variety of tailor made leasing and hire purchase solutions, loans and can be identified as a finance company with the widest range of financial solutions under one roof.