Vallibel Finance to raise Rs 2.12 b via rights issue

Vallibel Finance PLC will raise around Rs 2.12 billion through a rights issue of new ordinary voting shares, aimed at strengthening its Tier I capital and supporting the company’s next phase of growth and expansion, Managing Director S. B. Rangamuwa told the media last week.

He said the move, approved by the Board of Directors on January 9, will see the issuance of 29,431,675 new ordinary voting shares at Rs 72 each.

The rights issue will be offered to existing shareholders on a pro rata basis, granting one new share for every eight shares held as of the entitlement date. This structure ensures that current shareholders are given priority in subscribing to the new shares, enabling them to maintain their proportional ownership while contributing to the company’s capital enhancement.

He said the capital raise forms part of a broader strategy by Vallibel Finance to reinforce its financial foundation, enhance regulatory capital buffers, and position the company to capitalise on emerging opportunities within Sri Lanka’s evolving financial services landscape.

Strengthening Tier I capital is expected to support increased lending capacity, improve resilience, and enable sustained business expansion. The company has surpassed Rs 100 billion in assets within 17 years of operations, he said.

Vallibel Finance holds an “A-” (LRA) credit rating along with an “A” brand rating.

Rangamuwa said the company’s nationwide presence remains a key competitive advantage, with an expanding network of 87 branches and a workforce of over 2,200 employees.

Source - Sunday Observer