Softlogic Finance PLC, a subsidiary of Softlogic Capital, which is the financial arm of the Softlogic Group, announced plans to strengthen its Tier 1 Capital in compliance with Capital Adequacy Requirements as stipulated by the Central Bank of Sri Lanka, through a planned Rs. 2,239,667,740.00 (roughly Rs. 2.2 billion) Rights Issue to existing shareholders.
Softlogic Finance was recently backed by a resounding vote of confidence by its shareholders by way of a fully subscribed Rights Issue. The company’s overall secured lending base, including gold loan and leasing, recorded a year-on-year growth of 26%, while Softlogic Finance’s new loan book of nearly Rs. 14 billion recorded zero non-performing loans (NPLs). This further enabled the company to secure investor confidence to successfully raise debt capital by way of a lease securitisation of Rs. 1 billion during the year.
The Rights Issue is subject to the approval of the Colombo Stock Exchange and shareholders.
SFL’s parent Softlogic Capital Plc, which owns an 85% stake in the subsidiary, has agreed to take up fully its Rights entitlement and to further subscribe fully for any unsubscribed Rights so that the issue would be fully subscribed.
Separately Softlogic Life Insurance owns 5.8% and Softlogic Holdings 1.15% in SFL. Public shareholding in SFL is 7.6% held by 1,670 shareholders.The highest share price of SFL in the quarter ended 31 December 2020 was Rs. 13.80 and the lowest was Rs. 10.60 and closed at Rs. 11.70. Net assets value per share is Rs. 11.50, down from Rs. 9.56 a year earlier and Rs. 19.74 as at end FY20.
believing that the negative impacts of Covid-19 are largely transitory, invested in multiple digital transformational initiatives to help accelerate productivity. To further streamline its business and deliver results to shareholders, the company has implemented innovative ways to optimise operations, such as introducing a new collections system and an MIS Dashboard to rigorously monitor performance.