Friday, August 26, 2011

CDB capital funds rise

Raises Rs 718 m from Rights Issue:

Citizens Development Business Finance PLC (CDB) capital funds have risen to around Rs 1.8 billion subsequent to the CDB’s Rs 718 million rights issue which was fully subscribed.

CEO Mahesh Nanayakkara said the Rights Issue successfully raised Rs 718,110,435. “This fresh capital infusion has substantially strengthened our balance sheet while also supporting our rapidly expanding lease and loan book portfolios,” he said. “Parallely it will help us further accelerate our growth trajectory capitalizing on the massive opportunities available for the financial services industry in post-war Sri Lanka.”

CDB affirmed plans to swell its current islandwide branch network from 33 to 47 an effort to reach to a greater populace with its vibrant bouquet of products and services.

“This also falls in line with the compliance requirements of Central Bank of Sri Lanka,” Nanayakkara said.

Under the recently concluded Rights Issue, 6,614,175 new Ordinary Voting Shares were issued at Rs 70 per share raising a total amount of Rs 462,992,250 from voting rights and 5,669,293 new Ordinary Non-Voting Shares were issued at Rs 45 per share, which was a new class of shares raising a total amount of Rs 255,118,185.

For the Financial Year 2010/11 CDB recorded a net profit after tax figure surpassing the rupees half a billion mark which was an over seven fold increase compared to the corresponding previous financial year. Total assets and revenue grew by 53 percent and 47 percent respectively. Continuing its growth momentum, CDB recorded a 132 percent growth in after tax profits for the First Quarter of FY2011/12. This reflects a 132 percent year on year (YoY) growth.

Revenue surpassed the rupees half a billion mark during the Q recording a Rs 572.57 million. Figure, a 37 percent Year on year increase. Net interest income grew by 60 percent to Rs 259.61 million. During the quarter, CDB’s asset base grew 9.16 percent from the previous financial year ended March 31, 2011, thus surpassing the Rs.11 billion. mark.

The loan portfolio quality reflected in NPL stood at 3.19 percent and has been benchmarked as among best in the industry.

The results posted for first quarter 2011/12 are seen as a continuation of the exceptional financial results posted during the previous financial year.

NDB Investment Bank acted as the Advisor to the Issue while Nithya Partners acted as the Legal Advisors. (ss)
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