Tuesday Sep 30, 2025
Tuesday Sep 30, 2025
Monday, 29 September 2025 00:22 - - {{hitsCtrl.values.hits}}
Assetline Finance Ltd., (AFL), the flagship company under the financial services pillar of David Pieris Holdings, has announced the intention to raise up to Rs. 5 billion through an inaugural issuance of listed, rated, unsecured, senior, redeemable debentures in 2025.
The landmark initiative marks the company’s first-ever entry into the listed debt capital market, reflecting AFL’s commitment to diversifying funding sources and strengthening long-term growth.
The proposed issue will comprise up to 50 million debentures at a face value of Rs. 100 each, with a tenor of five years. The issuance is subject to obtaining all necessary regulatory approvals, and upon approval, the debentures are expected to be listed on the Colombo Stock Exchange.
Lanka Rating Agency (LRA) has assigned a Preliminary ‘A’ rating with a Positive Outlook to the proposed debenture issue, consistent with AFL’s entity rating. This independent credit opinion demonstrates AFL’s financial strength, prudent risk management, and ability to meet obligations, offering investors strong assurance of creditworthiness.
Funds raised from the debenture issue will be strategically deployed to grow AFL’s lending portfolio and support product innovation initiatives. This approach is designed to diversify the company’s financial solutions, address evolving customer needs, and reinforce long-term growth.
Key terms, including the interest rate, coupon structure, and frequency of payments, will be finalised after assessing prevailing market conditions and investor appetite. This ensures that the debentures are competitively priced, delivering attractive returns while aligning with AFL’s funding strategy. Full details of the issue, including the terms and conditions of the debentures, redemption features, risk factors, and statutory disclosures, will be made available in the Prospectus, subject to the receipt of all necessary regulatory approvals.
AFL is among the most strongly capitalised finance companies in Sri Lanka, maintaining a Capital Adequacy Ratio (CAR) of 26.12% as of 31 March 2025, well above regulatory requirements. The company delivered a solid Return on Equity (ROE) of 18.2%, reflecting efficient capital deployment and profitability. In addition, its Stage 3 Non-Performing Assets (NPA) ratio stood at 3.93%, one of the lowest in the industry, highlighting prudent credit risk management and strong asset quality.
