Nation Lanka Finance PLC raises fresh equity capital with a foreign investment group
View(s):Nation Lanka Finance PLC last week signed an agreement with GEM Global Yield Fund to receive a fresh equity infusion of Rs. 1.4 billion initially made up of Rs. 700 million through a private placement and Rs. 674 million in private unlisted warrants. The new funding is meant to support its lending business including the micro lending programme and also to enhance the core capital, a company statement said.
According to Nation Lanka Finance PLC CEO Charith Amarasekara, the private placement and the warrants both will not exceed 29.9 per cent of the company share structure.
“We (had) contracted Yenom (Pvt.) Ltd. to help us find a dynamic investor that could help fund Nation Lanka Finance PLC so that we can capitalize on the growth potential in the financial industry. The entire process was signed and completed in less than three months, which has allowed us to fast track our growth strategy for 2014 and open up new horizons for our future,”he said.
As at 30th September 2013, Nation Lanka Finance PLC has around 250 million shares in issue with a Net Asset Value (NAV) per share of around Rs. 1.2 billion. It has assets worth Rs. 4.3 billion as at end September 2013. Liabilities amounted to Rs. 4 billion.
The statement quoted Mr. Amarasekara as saying that, “We have already made plans to disburse new funds very quickly to yield the maximum returns to the company”.