HSBC arranges Rs. 5B syndicate loan to Mobitel

FACILITY: HSBC arranged a syndicate commercial loan facility of Rs. 5 billion for Mobitel, which is being one of the largest syndication loans in the market, sources said.

HSBC Chief Executive Officer (CEO) David J. H. Griffiths said that the success of this loan epitomises HSBC’s resourcefulness as well as the bank’s continued commitment to develop and support the local telecommunication industry.

He said that Mobitel is a considerable force in the telecommunication industry in Sri Lanka, and HSBC is proud to contribute to their growth by arranging this loan facility. Being one of the largest rupee syndications in Sri Lanka, this goes to show the confidence and trust investors have in Mobitel, he said.

The Chairman Sri Lanka Telecom Mobitel Asoka Weerasinghe de Silva, said that they are proud to be associated with HSBC, as well as the BOC, People’s Bank, HNB, Sampath Bank and NSB. These banks have been with us from the beginning of the GSM launch. This funding arrangement is for the launch of 3G services and 2G expansion under GSM Stage 3.

This loan facility would provide in support of Mobitels GSM Stage 3 expansion and will contribute towards extending their network coverage to rural areas outside of greater Colombo. Further, it will also be used to roll out the 3G-network of Mobitel.

The total investment of Mobitel on GSM services would be amounting over USD 200 million with this investment, he said.

The loan is structured as an 8-year door-to-door tenor with 2 years grace and will be repaid over 12 equal semi-annual repayments.

The syndication, which was over-subscribed, is a clear indication of the confidence that the investor community has in Mobitel.