Asia Asset Finance, a finance company and subsidiary of Sri Lanka’s Asia Capital group, plans to invest at least 90% of the Rs.301 million raised by the company through an IPO in its core operations including leasing, hire purchase, corporate loans, three wheel, group personal loans, consumer financing, and pawning, Rajiv Gunawardena the Chief Executive Officer / Director of Asia Asset Finance told the Business Times.
Core businesses include leasing, hire purchase, corporate loans, three wheel, group personal loans, consumer financing, and pawning. The remaining 10 % would go towards branch expansion and product development.The firm plans to increase its branch network from the current 10 to 19 by end of financial year 2012, mostly in the north and east regions, he revealed.
Mano Nanayakkara, Managing Director of AAFL and Chairman of Asia Capital which bought the finance firm in 2004 and re-structured it, said he is fully satisfied with the company’s achievement and through the IPO he expects the company to grow fast given opportunities in the post-war economic recovery.
The company has plans for securitisation starting in February 2012 to raise Rs 150 million in low cost funds using its hire purchase and leasing portfolio, he disclosed.
The company will penetrate non-traditional markets geographically, for example, new markets like Kilinochchi and Mullaitivu or it will offer the market a different product which is not directly competing with the products offered by the standard finance companies,” he said.
Their tailor-made and differently structured product offerings to customers include a wide range of services which consists of microfinance, loans for women entrepreneurs, educational loans, cheque discounting and group personal loans amongst many others, Mr. Gunawardena said. The company targets a net profit of Rs. 100 million during the ongoing financial year, he added.