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Thursday, June 8, 2023

Fintrex Finance completes rights issue with FDI – The Morning

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Fintrex Finance Ltd. recently completed a rights issue of Rs. 600 million from existing investors to fund future growth. Shareholders invested through Bluestone 1, the sole owner of Fintrex Finance, in a transaction that was managed by Bluestone Capital (Pvt.) Ltd . 

Commenting on the foreign direct investment (FDI) from Hamblin Watsa Investment Counsel (HWIC) and the performance of the company, Chairman Ajit Gunewardene said: “As an institution that recently celebrated 10 years, my team and I are extremely satisfied with the progress of Fintrex. This FDI during a volatile economic climate is a clear demonstration of investor confidence in our five-year strategic plan to further expand, grow and digitalise our processes, the latter especially being in line with our technology-driven platform for business.”

The capital raise was led by HWIC (Asia), a 100% owned entity of Fairfax Holdings (Canada) which owns a 70% stake, MAS Investments, and Rosewood Capital.

Fintrex Finance concluded its nine-month period ended December 2021 with a post-tax profit of Rs. 286.7 million, representing a growth of 407% compared to the previous year.

The company’s financial parameters bear witness to its strength as a stable financial institution. With the right issue, core capital base reached Rs. 3.2 billion, with the capital adequacy ratio (CAR) strengthened to 23.79%. With a recorded return on equity (ROE) of 14.95% and a provision cover of 74%, the company has proved its ability to be a strong contender in the financial services sector, especially during challenging times. 

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