HSBC int'l loan of US $ 45 mn for Sampath Bank
Shirajiv Sirimane
The investor confidence for Sri Lanka is growing and this was the
reason for arranging the over subscription of US$45 million three-year
syndicated loan facility for Sampath Bank Ltd, by Hong Kong Bank.
CEO HSBC, David Griffith said that the Sampath Bank was looking at
US$ 25 million and it was over subscribed for US $ 45 million.
"This facility is a further testimony of HSBC's capability of
arranging off shore syndicated loans in the country.
In May 2007, HSBC arranged a US$ 210 million facility for the Bank of
Ceylon, which is the largest syndicated loan for a Sri Lankan entity.
The investor sentiments in May too was the same and this once again
proves the investor confidence the international lenders have on Sri
Lanka," he said.
The credits strength of Sampath Bank Ltd too was another plus point
to this syndication.
"Road shows were held in Singapore and the UAE and several Banks in
Singapore, UAE, Indonesia and China have positively responded for this,"
he said. He said that the interest rates were very competitive.
CEO and Managing Director Sampath Bank, Anil Amarasuriya said that
this Syndicate was a major success, as they wanted to raise US $ 25 and
received US $ 45 million.
The syndicated loan facility would be used to fund their lendings,
finance their off shore activities and grow their loan book. He said
that they are very active in the Maldives with business revolving US $
20 million.
"In addition we are also engaged in lending to Singapore and
Bangladesh," he said. The over-subscription was also a clear indication
of the confidence that the international investor community has in Sri
Lanka HSBC's investment banking business focuses on, origination and
execution of corporate finance, merger and acquisition assignments,
divestitures, financial restructuring and associated financing
solutions.
This has combined with Bank's global market expertise, ensures HSBC's
ability to provide clients with the full suite of strategic financing
including debt capital markets, loan syndication; equity capital
markets, equity-linked capital markets, structured and asset backed
securities and leveraged finance.
The Fitch AAA (sri) rated HSBC, is not only the largest foreign
commercial bank in the island but also the 5th largest private
commercial bank in Sri Lanka.
Sampath Bank, abroad based and profitable bank is AA- (sri) rated by
Fitch.
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