BOC enters in to US $ 140 m Syndicated Loan Facility
With Mashreq Bank PSC, Dubai:
Bank of Ceylon (BOC), the largest and most profitable Sri Lankan
Commercial Bank in 2010, recently signed a one year Syndicated Loan
Facility arranged by Mashreq bank Dubai for US$ 140 million. This is the
second such facility arranged by Mashreq bank for BOC this year. This
followed the Syndicated Loan Facility of US$ 175 million arranged in
April 2011 and both these transactions were substantially
oversubscribed. BOC continues to outperform the industry, turning in the
financial results that have reinforced its position as one of the best
performing banks in the country. The rating outlook of BOC was lifted up
to AA+ (lka)/ Stable outlook by Fitch Ratings Lanka Limited, the highest
ranked local bank by Fitch and Bankers Almanac.
The bank’s importance to the state, full state ownership, strong
franchise and financial profile and its high systemic importance to the
Sri Lankan banking sector has won the hearts of a whole set of new
investors throughout this syndication. By September 2011, BOC has
achieved the highest ever profit of Rs. 10.01 billion and its asset base
reached a record of Rs. 779 billion, securing its leadership position in
the market. The strong recognition augers well for its future dealings.
Mashreq bank is one of the leading financial institutions in the
United Arab Emirates. It has a strong franchise in loan syndication
anchoring the transaction in record time along with 10 banks including
key partner banks such as Sohar Bank, Doha Bank, The ARAB Investment
Company SAA-Wholesale Bank (Branch).
The strong strategic relationship between the two institutions will
further be strengthened with this syndication. The purpose of the
syndication is to utilize the proceeds to fulfill the short-term funding
requirements and trade finance related needs of BOC. Both banks look
forward to further expand the bilateral economic and trade relationships
with the signing of this facility. |