Asia Asset Finance plans Rs. 1.5bn Rights Issue

Asia Asset Finance PLC (AAF) has announced plans to raise around Rs. 1.5 billion through a Rights Issue to strengthen its capital position and support future business growth.

The Board of Directors, at its meeting held on 10 June 2026, resolved to recommend the issuance of 45.16 million new ordinary voting shares to existing shareholders, subject to regulatory and shareholder approvals.

Under the proposed Rights Issue, shareholders will be entitled to receive four new ordinary voting shares for every eleven ordinary voting shares currently held. The shares will be offered for Rs. 33.30 per share, generating total proceeds of nearly Rs. 1.504 billion.

The Rights Issue is based on the company's current stated capital of 124.2 million ordinary voting shares. It will require approval in principle from the Colombo Stock Exchange (CSE), as well as shareholder approval at a meeting to be convened at a later date.

According to the company, the primary objective of the capital raising exercise is to strengthen its Tier 1 Capital in line with regulatory requirements set by the Central Bank of Sri Lanka (CBSL). The additional capital will also enable the company to expand its business volumes and support planned growth initiatives over the coming months.

Asia Asset Finance currently has a stated capital of Rs. 2.21 billion. Upon successful completion of the Rights Issue, the company expects to further enhance its financial strength and position itself for future expansion while maintaining compliance with regulatory capital requirements.