Kanrich Finance Limited (KFL) will raise Rs.2 billion capital through a private placement in order to fulfill the core capital requirement by the extended deadline of 31st December 2020. Central Bank stipulates, from time to time, the minimum core capital financial institutions need to maintain and accordingly the minimum core capital that a registered finance company should maintain after 1st January 2021 is Rs.2 billion.
The Central Bank of Sri Lanka has granted approval to Kanrich Finance Limited to issue Ordinary Voting shares and Non-Redeemable, Non-Cumulative Preference shares. The Private placement plans to raise Rs.1 billion in Ordinary shares and a further Rs. 1 billion in Preference shares, which together, will bring the core capital close to Rs.3 billion.
Incorporated in 1971, Kanrich Finance was re-launched in 2010 and within six years the company increased its asset base from Rs. 600 million to Rs. 12 billion and expanded a single location company into a finance company with 36 branches and over 1,000 employees.
The company has a diversified lending portfolio comprising leasing, micro leasing, micro finance, pawning and consumer loans. Currently the company is concentrating mainly on lending in pawning and will start diversifying again once the share issue is complete.
The company will complete the share issue before the end of the year.