Asia Asset Finance Rights Issue Oversubscribed, Strengthening Capital Position and Investor Confidence

Asia Asset Finance PLC (AAF) has further strengthened its capital position following the successful oversubscription of its Rights Issue, reinforcing the company’s financial resilience and providing a stronger platform for its next phase of sustainable growth.

The Rights Issue comprised 45,162,012 Ordinary Voting Shares at Rs. 33.30 per share, offered on the basis of four shares for every 11 shares held, to raise approximately Rs. 1.504 billion.

Investor response exceeded the amount sought. Applications totalling approximately Rs. 1.937 billion were received, resulting in the issue being oversubscribed by approximately Rs. 432.49 million. AAF received 1,264 applications for 44,582,154 shares under shareholder entitlements, together with 247 applications for a further 13,597,662 additional shares.

The newly infused capital further enhances AAF’s capital base and supports the company’s continued focus on maintaining a strong Capital Adequacy Ratio (CAR). The strengthened position provides additional capacity to support business expansion, reinforce operational resilience and pursue sustainable growth while maintaining prudent financial discipline.

“The successful oversubscription of our Rights Issue is a strong vote of confidence in Asia Asset Finance and our growth journey. The new capital infusion further strengthens our capital adequacy and supports sustainable, responsible expansion. Backed by the strength of the Muthoot Group, we remain focused on advancing financial inclusion, supporting women’s financial empowerment, and expanding access to responsible financial solutions across underserved communities, while creating long-term value for all stakeholders.” Rajiv Gunawardane, Chief Executive Officer, Asia Asset Finance PLC

The successful capital raise further strengthens an institution with over 55 years of experience in Sri Lanka’s financial services sector. AAF is the Sri Lankan subsidiary of Muthoot Finance, giving the company the backing, expertise and financial heritage of one of India’s leading financial services institutions.

With an islandwide network of over 125 branches, AAF serves communities across Sri Lanka through a diversified portfolio encompassing leasing, gold loans, fixed deposits, mortgage financing and other financial solutions. Its Fitch A+(lka) rating with a Stable Outlook further underlines the company’s financial standing.

Supported by a strengthened capital base, international parentage, an extensive distribution network, and decades of local experience, Asia Asset Finance enters its next phase from a position of strength, focused on financial resilience, responsible growth, customer-centric innovation, and creating sustainable value for Sri Lanka.

Picture caption: GM Treasury – Praveen Pieris and CEO Rajiv Gunawardana

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