Prime Finance raises Rs 526.68M via Rights Issue

CEYLON TODAY | Published: 2:00 AM Jan 21 2021
FT Prime Finance raises Rs 526.68M via Rights Issue

Prime Finance PLC, a member of the Prime Group, announced that it raised capital of Rs 526.68 million following the successful conclusion of its fully subscribed Rights Issue in December 2020. 

Prime Finance PLC is a Licensed Finance Company by the Monetary Board of Central Bank of Sri Lanka (CBSL) which provides personal and business finance solutions. The Company offers fixed deposits, savings deposits, leasing, vehicle loans, mortgage loans, and real estate development and related services. 

The Company is assigned with an issuer rating of [SL] BBB- (Pronounced SL triple B minus) with a stable outlook by ICRA Lanka Limited, subsidiary of ICRA Limited, a group Company of Moody’s Investors Service. 

Prime Finance PLC is a member of Prime Group, the market leader in Real Estate Business in Sri Lanka who was awarded the ‘Best Property Developer in 2018’ at the Property Guru Asia Property Awards in 2018. 

Prime Finance PLC went for a Rights Issue of 41.8 million ordinary shares in the proportion of nineteen new ordinary shares for every thirty-six ordinary shares of the Company at an issue price of Rs 12.60 per share amounting to Rs 526.68 million. The objectives of the said Rights Issue were to ensure compliance with Core Capital requirements stipulated by the CBSL as well as the Minimum Public Holding requirements set out in the Listing Rules of the Colombo Stock Exchange (CSE). 

With the conclusion of the said Rights Issue, the Core Capital of the Company now exceed Rs 2.1 billion, well above the stipulated regulatory minimums. Meanwhile Minimum Public Holding requirement is increased to 11.86%.  

With the said Capital infusion, Prime Finance PLC is now a well-capitalised Finance Company in terms of Finance Business Act Guidelines No. 01 of 2020, which was recently issued by the CBSL. 

CEYLON TODAY | Published: 2:00 AM Jan 21 2021

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