Asia Asset Finance to raise Rs. 2 b through debentures

Friday, 23 October 2026 04:40 - - {{hitsCtrl.values.hits}}

Asia Asset Finance PLC yesterday said it will raise Rs. 2 billion through an issue of debentures.

The Board of the Muthoot Group company has resolved to issue 20 million Listed, Rated, Unsecured, Senior, Redeemable Debentures at an issue price of Rs. 100 each. The debentures will have a tenor of five years, and the company proposes to list them on the Colombo Stock Exchange.

Debentures are debt instruments through which a company borrows from investors for a fixed period. Being unsecured, these are not backed by specific assets, while their senior status means holders are repaid ahead of subordinated creditors if the company is wound up. As redeemable debentures, the principal will be repaid at the end of the five-year term.

The Central Bank of Sri Lanka approved the issuance by letter dated 21 October, 2026, under the Finance Companies (Debt Instruments) Direction No. 3 of 2013. The issue remains subject to obtaining all related approvals from the relevant regulatory bodies, the company said.

The coupon frequency and interest rates will be decided closer to the finalisation of the Trust Deed, based on market rates prevailing at that time.