Kanrich Finance raises Rs. 750 mln from capital markets for expansion
View(s):Kanrich Finance has raised Rs. 750 million to fund its micro finance operations through an issue of asset receivable backed trust certificates.
Kanrich’s micro finance portfolio of over Rs 5 billion generates substantial amount of cash receivables on weekly basis enabling the company to issue asset receivable backed trust certificates, Shiran Weerasinghe, Director/CEO said in a media statement.
He said securitizing a part of the portfolio gave the company a path to broad-base its funding sources and added that the objective of the transaction is to further expand the operations whilst effectively managing the portfolio balance.
First Capital Ltd and the Bank of Ceylon acted as the Manager of the facility and the Trustee respectively to the transaction.
Kanrich’s monthly lending that was under Rs 50 million at the beginning of 2012, increased to Rs 1 billion a month within three years which resulted in its interest income increasing to Rs 1,296 million in FY 2013/14 from Rs 175 million in FY2011/12.