Assetline Finance to raise Rs. 5bn through inaugural debenture issue

Assetline Finance Limited (AFL), the financial services arm of the David Pieris Group, has announced its first-ever foray into the listed debt capital market with a planned Rs. 5 billion debenture issue. 

The move is aimed at diversifying the company’s funding sources and fuelling its long-term growth strategies.

The inaugural issuance will consist of up to 50 million listed, rated, unsecured, senior, redeemable debentures, each with a face value of Rs.100 and a five-year tenor. The debentures are slated to be listed on the Colombo Stock Exchange, pending regulatory approvals.

Lanka Rating Agency Limited (LRA) has assigned a preliminary ‘A’ rating with a Positive Outlook to the proposed debenture issue, aligning with AFL’s existing entity rating. According to the company, this rating underscores its financial strength, prudent risk management, and capacity to meet its financial obligations, offering a strong signal of creditworthiness to potential investors.

The funds raised from this issuance are earmarked for the expansion of Assetline Finance’s lending portfolio and to support new product innovation. 

The company stated that this strategic deployment of capital is intended to diversify its financial offerings, cater to evolving customer demands, and bolster its long-term growth trajectory.

Final details regarding the interest rate, coupon structure, and payment frequency will be determined based on prevailing market conditions and investor interest to ensure competitive and attractive returns. A detailed prospectus with all terms, conditions, and disclosures will be made available upon receipt of all necessary regulatory approvals.

Assetline Finance highlighted its strong financial position, noting a Capital Adequacy Ratio (CAR) of 26.12 percent as of March 31, 2025, which is significantly above the regulatory requirement. 

The company also reported a solid Return on Equity (ROE) of 18.2 percent and one of the industry’s lowest Stage 3 Non-Performing Assets (NPA) ratios at 3.93 percent, reflecting its efficient capital management and robust asset quality. A member of the diversified David Pieris Group, Assetline Finance is licensed by the Monetary Board of the Central Bank of Sri Lanka. The David Pieris Group has a significant presence across various sectors in Sri Lanka, including automotive, financial services, logistics, and renewable energy, with a nationwide network of over 2,500 touchpoints.