Assetline Finance opens subscriptions for landmark Rs. 5 b debenture issue

Assetline Finance, the flagship company of the David Pieris Group’s financial services arm, has announced that subscriptions will open today (9) for its inaugural issuance of listed, rated, unsecured, senior, redeemable debentures, targeting up to 

Rs. 5 billion. 

This marks a significant milestone as Assetline Finance enters the listed debt capital market for the first time, reflecting confidence in its growth trajectory and a strategic focus on funding diversification, liquidity and long-term financial resilience.

The Colombo Stock Exchange has approved the listing of 50 million debentures, each with a face value of Rs. 100 each and a tenor of five years. The issue has received a preliminary ‘A’ rating with a Positive Outlook from Lanka Rating Agency, highlighting Assetline Finance’s creditworthiness, robust capital position, prudent risk management, and ability to navigate evolving market conditions.

The issuance underscores the company’s operating stability, sound financial profile, and readiness to leverage capital markets to support sustained growth. Investors are offered attractive annual and semi-annual interest options designed to deliver competitive risk-adjusted returns while supporting Assetline Finance’s balanced funding strategy. Proceeds from the issue are earmarked for expanding the company’s lending portfolio, supporting product innovation, and strengthening its funding base, enabling greater value creation across customer segments and contributing to national economic activity through increased credit access.

Assetline Finance enters this capital market initiative with a strengthened and increasingly resilient financial performance for the first half of FY25/26 with total assets rising to Rs. 72,712 million, nearly 40% growth driven by lending expansion and improved asset quality. Interest income reached Rs. 6,732 million and net interest income Rs. 4,826 million, supported by strong traction in core operations

Profitability indicators demonstrated meaningful improvement, with profit before tax rising to Rs. 2,940 million and profit after tax reaching Rs. 1,416 million, underpinned by efficient collections, strengthened underwriting controls, and enhanced operating efficiency. The lending portfolio grew by 42% to Rs. 60,651 million, during the first half of FY25/26, driven by strong demand across SME, micro-enterprise, and mobility-based segments, while equity strengthened to Rs. 17,154 million, further reinforcing its capacity for expansion.

Asset quality demonstrated continued improvement, with the Gross Stage 3 Loan Ratio improved to 4% from 9.7% a year earlier, while the Net Stage 3 Ratio improved to 1.8% from 6.4%. The Stage 3 Impairment Coverage Ratio increased to 55%, up from 37.2% in the previous year’s corresponding period, reflecting stronger provisioning discipline. Liquidity indicators remained healthy, supported by a balanced borrowing structure and prudent treasury management. Assetline Finance maintained one of the strongest capital positions in the sector, with a Capital Adequacy Ratio of 18.45% as at 30 September 2025, significantly above regulatory thresholds.

Operational efficiency continued to strengthen, with the Cost-to-Income Ratio maintained at 39.8%, positioning Assetline Finance among the most efficiently managed entities in the industry. The company also continued expanding its physical footprint, with the opening of its 60th branch in Ja-Ela, making it one of the most accessible financial service providers in Sri Lanka.

Director and CEO Ashan Nissanka said that the offering reflects confidence and strategic foresight. “This debenture issue marks a forward-looking step in our growth agenda and demonstrates our confidence in the future. We are entering the capital market with a proven business model, strong financial fundamentals, and a clear commitment to operational excellence. We believe that this issue provides investors with an attractive opportunity to benefit from consistent, risk-aligned returns while partnering with us on the next phase of our journey,” he said. 

He noted that Assetline Finance remains committed to responsible lending, sustainable business practices, and meaningful economic contribution. “Our purpose extends beyond profitability. It is centred on delivering long-term value, supporting entrepreneurship, strengthening communities, and contributing to the country’s economic resilience,” he added.

The Manager to the issue is Capital Alliance Partners Ltd. (CAL).  

Prospective investors are encouraged to review the prospectus, which contains full particulars of the issue including terms, conditions, risk disclosures, and statutory information, available through authorised distribution channels.