Alliance Finance Co PLC (AFC) has successfully raised Rs.1 billion in Tier II capital, with the aim of strengthening the regulatory capital of the company to financially empower and facilitate the development of the micro, small and medium enterprise sector in Sri Lanka.
The Tier II subordinated debt has a tenure of five years and has been structured and arranged by Capital Alliance Ltd (CAL), a leading investment bank in the country.
Commenting on this important milestone, AFC Deputy Chairman and Managing Director Romani de Silva stated, “This is a reflection of the confidence our investors have in our sustainable business philosophy. Due to the COVID-19 pandemic, Sri Lankan micro, small and medium entrepreneurs need more support than ever before and raising of Rs.1 billion as subordinated debt strengthened our Tier II capital, which gives us an enormous capacity to develop micro, small and medium-scale entrepreneurs of Sri Lanka using our proven business models.”
“Furthermore, we extend our sincere appreciation for the investor (CAL) for the trust placed in us. Subsequent to an internal restructure with the technical assistance of IFC (private sector arm of the World Bank Group) in 2019, all of the performance metrics of the company have improved tremendously outperforming its peers in the industry with a loan book growth of 1.6 percent, profit growth of 169 percent and a highly commendable reduction in NPLs by 23 percent for the financial year ended 2020/21, validating the impact of the restructure. As the oldest finance company in Sri Lanka and as a net lender to the rural economy, AFC is focussing on financial inclusivity and sustainable development of all communities,” she added.