Softlogic Finance to raise Rs. 2.23 b via Rights Issue
Softlogic Finance PLC, a subsidiary of Softlogic Capital, which is the financial arm of the Softlogic Group, announced plans to strengthen its Tier 1 Capital in compliance with Capital Adequacy Requirements as stipulated by the Central Bank of Sri Lanka, through a planned Rs. 2,239,667,740.00 (roughly Rs. 2.2 billion) Rights Issue to existing shareholders.
Softlogic Finance was recently backed by a resounding vote of confidence by its shareholders by way of a fully subscribed Rights Issue. The company’s overall secured lending base, including gold loan and leasing, recorded a year-on-year growth of 26%, while Softlogic Finance’s new loan book of nearly Rs. 14 billion recorded zero non-performing loans (NPLs). This further enabled the company to secure investor confidence to successfully raise debt capital by way of a lease securitisation of Rs. 1 billion during the year.
Softlogic Finance, believing that the negative impacts of Covid-19 are largely transitory, invested in multiple digital transformational initiatives to help accelerate productivity. To further streamline its business and deliver results to shareholders, the company has implemented innovative ways to optimise operations, such as introducing a new collections system and an MIS Dashboard to rigorously monitor performance.