Capital Injection

Feb 09, 2014 (LBO) – Sri Lanka’s Nation Lanka Finance Plc, a registered finance company is getting a 700 million rupee equity investment which will boost its capital over a few weeks, officials said. Financing by GEM was arranged by Yenom (Pvt) Ltd, a company operated by Kosala Heengama and Gregory Scott Newsome, who were connected to Environmental Resource Holdings, a firm that had run into some controversy.

Newsome said the equity investment by GEM could be followed up by further financing.

There were also opportunities for acquisitions after the Central Bank asked for proposals to merge smaller finance companies, and they were being looked at, he said.

Global Emerging Markets (GEM) which has offices in New York and Europe will invest on formula based on trading volumes and price of the existing shares.

Officials said the GEM may receive about 60 to 65 million shares adding to the existing 250 million shares in issue.

Asanga Seneviratne, who with other investors including Sri Lanka’s Nawaloka group who took over the firm over two years ago, said a first round of re-capitalization by them had made the balance sheet positive with net assets of about 1.20 rupees. The new new