Asia Asset Finance to raise Rs. 2 b via listed debentures

Asia Asset Finance PLC is to raise Rs. 2 billion via listed debenture issue.

It said the Board of Directors resolved to issue up to 20 million Listed Rated Unsecured Senior Redeemable Debentures at an issue price of Rs. 100 each with a term of up to five years.

The debenture issue will be subject to necessary regulatory approvals.

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

Fitch Ratings in February assigned Sri Lanka-based Asia Asset Finance PLC a first-time National Long-Term Rating of ‘A+(lka)’ with a Stable outlook.

Asia Asset Finance is a 72.9%-owned subsidiary of India-based Muthoot Finance Ltd. Its core business is in gold-backed lending, similar to its parent.