Sampath gets US $ 62.5 m syndicate loan
Sanjeevi JAYASURIYA
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Bank Mascat Chief Executive Officer Abdul Razak Ali Issa
receiving a token of appreciation from Sampath Bank Managing
Director Aravinda Perera. Picture by Sumanachandra Ariyawansa
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Sampath Bank which continues its growth momentum will infuse capital
to support the fund base by securing a US $ 62.5 million syndicate loan.
“We have successfully concluded the fund raising initiative through a
syndicated loan which opened for $ 30 million and over subscribed by
twofold to close at $ 62.5million. The bank's strong balance sheet and
related financials, coupled with tremendous growth resulted in
overwhelming responses by the syndicate participants amid prevailing
global economic issues ,” Sampath Bank Managing Director Aravinda Perera
told Daily News Business.
“The confidence of foreign investors in the Bank's performance to
date and its ability to sustain growth was amply evidenced by the
interest shown in the syndication by the foreign market. We were
received with a lot of enthusiasm and was accepted as a leading bank in
the backdrop of recognizing Sri Lanka as a safe destination for
investment,” he said.
One of the mandated lead arranger ,Citi Group Global Markets Asia
Limited and the Citibank Colombo Country Head and CEO Ravin Basnayake
said Sampath Bank has achieved phenomenal growth and revenue by reaching
all targets. There is a need to access foreign capital markets. This was
one of the largest deals in recent time.
This transaction will be a benchmark and will boost the confidence of
international markets, he said. The over subscription is evidence of
confidence in Sri Lanka and the banking sector. We are looking forward
to be a part of the strong economic growth of the country, Bank Mascat
Chief Executive Officer Abdul Razak Ali Issa said.
The two economies are in the growth stage and we are happy to support
Sri Lanka, he said. The funds raised will be utilized to meet the
forecasted asset growth where the bank recorded a growth of Rs 43.5
billion in its advance portfolio for 2011, a growth of over 35 percent.
An impressive 23 percent growth is forecasted for this year.
This was Sampath Bank's second venture to raise funds off shore,
having raised $ 45 million in 2007 through a similar syndication which
was paid off as scheduled. It has been one of the first private banks to
tap the off shore market for funds. |
