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Alliance Finance raises Rs. 1 b 

25 Nov 2021

  • Aims to strengthen regulatory capital of company
Alliance Finance Company PLC (AFC) raised Rs. 1 billion in Tier II capital, with the aim of strengthening the regulatory capital of the company to financially empower and facilitate the development of the micro, small, and medium-scale enterprise (MSME) sector in Sri Lanka. The Tier II subordinated debt has a tenure of five years and has been structured and arranged by Capital Alliance Ltd. (CAL). Commenting on this, AFC Deputy Chairman and Managing Director (MD) Romani de Silva stated: “This is a reflection of the confidence our investors have in our sustainable business philosophy. Due to the Covid-19 pandemic, Sri Lankan MSME entrepreneurs need more support than ever before, and raising of Rs. 1 billion as subordinated debt strengthened our Tier II capital, which gives us an enormous capacity to develop MSME entrepreneurs of Sri Lanka using our proven business models. “Furthermore, we extend our sincere appreciation for the investor (CAL) for the trust placed in us. Subsequent to an internal restructure with the technical assistance of International Finance Corporation (IFC) in 2019, all of the performance metrics of the company have improved tremendously, with a loan book growth of 1.6%, profit growth of 169%, and a highly commendable reduction in NPLs by 23% for the financial year ended 2020/21, validating the impact of the restructure. As the oldest finance company in Sri Lanka and as a net lender to the rural economy, AFC is focusing on financial inclusivity and sustainable development of all communities.”


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