Shareholder confidence backs Softlogic Finance’s growth trajectory

Softlogic Finance PLC, a subsidiary of Softlogic Capital the financial arm of the Softlogic Group, announced plans to strengthen its Tier 1 Capital in compliance with capital adequacy requirements as stipulated by the Central Bank of Sri Lanka, through a planned Rs. 2.23 billion rights issue to existing shareholders.

With an overall strategic plan to boost stability and ensure continuous growth, the newmanagement at Softlogic Finance has successfully steered the company in the right direction to overcome multiple challenges, including a country in a state of lockdown. Accelerating a transformational journey, Softlogic Finance was recently backed by a resounding vote of confidence by its shareholders by way of a fully subscribed rights issues.

The approach of the new management to focus on secured lendinggrew to fruition, resulting in the overall secured lending base including gold loan and leasing recording a year-onyear growth of 26 percent.

Softlogic Finance’s new loan book of nearly Rs. 14 billion recorded zero NPLS, a reflection of the emphasis on credit quality and the right collections strategy. This further enabled the company to secure investor confidence to successfully raise debt capital by way of a lease securitization of Rs. 1 billion during the year.

Softlogic Finance believes that the negative impacts of COVID-19 are largely transitory and as a result, invested in multiple digital transformational initiatives to help accelerate productivity. In order to further streamline its business and deliver results to shareholders, the company has implemented innovative ways to optimize operations such as introducinga new collections system and an MIS Dashboard to rigorously monitor performance.