Thursday Mar 26, 2026
Thursday Mar 26, 2026
Thursday, 26 March 2026 00:04 - - {{hitsCtrl.values.hits}}
Managing Director/CEO Mufaddal Choonia
Mahindra Ideal Finance Ltd., (MIFL) has announced the successful conclusion of its debut Rs. 1 billion debenture issue, which was oversubscribed on the first day of opening, marking a significant capital market milestone for one of Sri Lanka’s fastest-growing licensed Non-Banking Financial Institutions.
The Issue comprised up to 10 million Tier 2, Listed, Rated, Unsecured, Subordinated, Redeemable Debentures at a par value of Rs. 100 per Debenture, raising up to Rs. 1,000,000,000, with a five-year tenure maturing in 2031.
Commenting on the outcome, MIFL Managing Director/CEO Mufaddal Choonia said the proceeds of the company’s inaugural debenture issue will be deployed to strengthen lending capacity across its core business segments, including vehicle leasing, gold loans, SME loans, and business loans.
“The success of our first debenture issue is testament of our performance so far and speaks of the confidence that investors have placed in our future growth story. The strong market response is also the best validation we can secure from the investor community on the strong fundamentals that underpin our business. We will honour that trust by deploying these funds to further provide accessible credit to enrich the lives of our customers and for the communities we serve.”
The capital raise also strengthens the company’s Tier 2 capital base in compliance with the Central Bank of Sri Lanka’s Capital Adequacy Requirements.
The Debentures were offered in two structures — Type A, at a fixed rate of 12.00% per annum payable annually, and Type B, at a floating rate of the 364-Day Treasury Bill rate plus 3.50% per annum payable semi-annually.
The Issue carried a credit rating of A (lka) from Fitch Ratings Lanka Ltd., with MIFL holding an entity rating of AA-(lka) with a Stable Outlook. The Issue was managed by NDB Investment Bank Ltd., with Bank of Ceylon serving as Joint Placement Agent.
