Wednesday Jun 17, 2026
Wednesday Jun 17, 2026
Tuesday, 16 June 2026 05:05 - - {{hitsCtrl.values.hits}}
Asia Asset Finance PLC (AAF) has announced plans to raise approximately Rs. 1.5 billion through a Rights Issue aimed at strengthening its capital base and supporting future business growth.
The finance company said its Board of Directors had resolved on 10 June to recommend a Rights Issue of 45.16 million ordinary voting shares to existing shareholders. The proposed issue remains subject to shareholder approval and the CSE granting approval in principle for the listing of the new shares.
The company plans to issue 45,162,012 new ordinary voting shares at a price of Rs. 33.30 each, generating total proceeds of Rs. 1.504 billion. Shareholders will be entitled to subscribe for four new ordinary voting shares for every 11 ordinary voting shares currently held.
Asia Asset Finance currently has 124.2 million ordinary voting shares in issue, representing a stated capital of Rs. 2.21 billion. Upon completion, the rights issue is expected to significantly enhance the company’s capital position.
The company said the primary objective of the capital raising exercise is to strengthen its Tier 1 capital in line with regulatory requirements stipulated by the Central Bank of Sri Lanka (CBSL). It noted that the additional capital would also enable the company to expand business volumes in line with its planned utilisation of funds over the next two months.
Asia Asset Finance, a CBSL-licensed finance company and a member of India’s Muthoot Group, said further details, including the date of the extraordinary general meeting and key timelines relating to the rights issue, would be announced in due course following regulatory approvals.
