Sampath Bank in offshore fund raising drive

Sanjeevi JAYASURIYA

Sampath Bank PLC concluded a successful fund raising through a syndicate loan taking the advantage of the conducive business environment and flexibility to obtain foreign funding. This will also be in line with Central Bank's encouragement for Sri Lankan banks and corporates to raise offshore funds.

The syndicate which opened for a USD 30 million loan was oversubscribed twofold and closed at USD 62.5 million. The confidence of the foreign investors in the bank's performance to date and its ability to sustain the growth momentum was amply evidenced by the interest shown in the current syndication by foreign markets, Sampath Bank FCBU and Corporate Finance Chief Manager Shashi Kandambi Jassim told Daily News Business.

Sampath Bank's strong balance sheet and related financials coupled with its tremendous growth has resulted in the overwhelming response to the syndicate participation amidst the prevailing global economic issues, she said. The deal was put together by the Mandated Lead Arrangers Bank Muscat S.A.O.G, Citigroup Global Markets Asia Limited and Emirates NBD Bank PJSC. This was Sampath Banks' second venture to raise funds offshore, having raised USD 45 million in 2007 through a similar syndication, which was paid off as scheduled. The funds raised from the syndication will be utilized to meet the forecasted asset growth of Sampath Bank.