Abans Finance rights issue oversubscribed

Abans Finance PLC raised an additional capital by way of a Rights Issue from its existing shareholders, to fund the company’s future growth. With the Rights Issue, the company’s core capital base has now reached beyond Rs 2.5 billion.

A member of the diversified Abans Group, Abans Finance PLC, with a history of 17 years in the financial services sector, despite being the most turbulent business environment has recorded its highest ever profit for last three consecutive years by recording PBT of Rs. 154 million in FY 2019/20, Rs 427 million in FY 2020/21 and Rs 615 million in the last financial year i.e. FY 2021/22. With the successful completion of this rights issue, the momentum of consistent growth of the company will be further strengthened.

Abans Finance PLC’s chairman Cecil Perera said, “this is a proactive move made from a position of obvious strength that allows Abans Finance PLC to secure capital in anticipation of upcoming growth plans in the coming years and strengthening its position as a leading financial services organization.”

Abans Finance PLC is one of the most innovative finance companies in Sri Lanka and the company’s principal lines of business include finance leasing, mortgage loans, educational loans, hire purchase and acceptance of fixed and savings deposits. This product portfolio will be further expanded to products such as consumer durable financing in the future through the company’s strong branch network with extensive presence across the Island. This is further backed by over four hundred outlets island wide of its parent company i.e. Abans PLC.

Based on the business / financial analysis done on the company, FITCH Ratings Lanka Limited has rated Abans Finance PLC with an investment grading with a National Long-Term Rating of ‘A-(lka)’ RWN. As a key finance institution, the raising of its capital base allows Abans Finance PLC the added monetary equilibrium in continuing its strategic support to SMEs and other entrepreneurs who form the backbone of the country’s economy. This sector accounts for over 50% of the nation’s GDP, and addressing their financial needs is not only financially lucrative towards the company but fulfilling a corporate social responsibility as well.

Furthermore, Abans Finance PLC recently reinforced its strength with the joining of Sanjaya Bandara to the Board at the capacity of an Independent Non – Executive Director/chairman Board Audit Committee. With the latest appointment, the Board of Directors of Abans Finance PLC comprises of Chairman Cecil Perera, Rusi Pestonjee, MHiran Embuldeniya, Thulci Aluwihare, Mrs. Srini Ratnayake Choksy and Sanjaya Bandara.

The Company in addition also has a hand-picked a team of top management with a proven consistent track record headed by its Chief Executive Officer Dharshan Silva.