Senkadagala Finance to raise capital with Rs579mn rights issue

Feb 03, 2017 (LBO) – Sri Lanka’s finance sector player, Senkadagala Finance, is to raise 579 million rupees by way of a rights issue, the company said in a stock exchange filing.

The company has obtained Central Bank approval in compliance with Finance Companies Direction.

Subject to exchange and shareholder approval, the company is to issue 7,247,506 ordinary shares at 80 rupees each in the ratio of one share for every nine shares held.

The company said these proceeds will be utilized to maintain capital adequacy requirements in terms of the Finance Companies (Risk weighted capital adequacy ratio) Direction no 02 of 2006.

The current stated capital of the company is 1,008,062,200 rupees.

Senkadagala Finance which established in 1968 provides financial accommodation in the form of finance leases, hire purchase and loans.

It also provides real estate finance, trade finance, money market investment and accepts term deposits, Certificates of Deposit and savings accounts, which are operated by debit card at cash machines of nominated banks.