Announcement

Asia Asset Finance PLC (AAF), a listed subsidiary of Muthoot Finance Ltd., announced the successful completion of its Rights Issue 2026, raising LKR 1,503.9 million (approximately LKR 1.5 billion). The issue comprised 45,162,012 ordinary voting shares and was oversubscribed by roughly 1.3 times. The newly issued shares were listed on the Colombo Stock Exchange on 15 September 2026.

Financial Highlights (Q1 FY26/27)

During the first quarter of FY26/27, AAF’s loan portfolio reached LKR 5,270 crore, up 51% year‑on‑year from LKR 3,492 crore in the comparable period of the previous year. Total revenue for the quarter increased 72% YoY to LKR 357 crore, compared with LKR 207 crore a year earlier. Profit after tax surged 137% YoY, standing at LKR 43 crore versus LKR 18 crore in Q1 FY26/27.

Capital Raising Details

The rights issue provided AAF with additional capital to reinforce its balance sheet and expand its lending operations in Sri Lanka. The proceeds are intended to support continued growth of its diversified financial solutions portfolio, which includes gold loans, leasing, mortgage loans, securitized corporate loans, and public deposits.

Management Comment

"The successful completion of Asia Asset Finance’s Rights Issue, with the issue being oversubscribed by approximately 1.3 times, is a significant milestone for the company and reflects the confidence of shareholders in its growth journey," said George Alexander Muthoot, Managing Director of Muthoot Finance. "The capital raised will further strengthen AAF’s capital position and provide a stronger foundation to support its business expansion. With the company delivering strong growth across its loan portfolio, revenue and profitability in Q1 FY26/27, Asia Asset Finance is well positioned to build on this momentum and deepen its presence in Sri Lanka’s financial services landscape."

Company Profile

Asia Asset Finance PLC, incorporated in 1970, is a fully licensed, deposit‑taking institution registered with the Central Bank of Sri Lanka under the Finance Business Act No. 42 of 2011. Muthoot Finance Ltd. holds 78.41% of AAF’s equity share capital. AAF is rated A+ with a Stable Outlook by Fitch and serves individuals and businesses across Sri Lanka through a broad suite of financial products.

Outlook

The capital raised through the rights issue is expected to enhance AAF’s capacity to support further expansion of its lending business and sustain the strong growth trajectory demonstrated in the first quarter of FY26/27.