Serendib Flour Mills raises Rs. 3.6 billion To enhance its business
Serendib Flour Mills (Private) Limited (SFML), manufacturers of the
high quality '7 Star' brand wheat flour, recently raised Rupees 1.70
billion and US dollars 14.50 million (total amount equivalent to
approximately US $ 27 million) to finance its permanent working capital
requirements of the company, through a long term syndicated loan
facility.
Mohamed Riyal (Chief Financial Officer of SFML), Sathak
Abdul Kadar (Chief Executive Officer of SFML), Mahendra
Amarasuriya (Chairman of SFML), Russell de Mel (Chief
Executive Officer of NDB Group), Vajira Kulatilaka (Chief
Executive Officer – Investment Banking Cluster – NDB Group)
and Darshan Perera (Chief Executive Officer – NDBIB) at the
event. |
NDB Investment Bank Limited (NDBIB) acted as the Arranger to this
facility while a consortium of six banks comprising Commercial Bank of
Ceylon PLC, Hatton National Bank PLC, Indian Bank, National Development
Bank PLC, Peoples' Bank and Sampath Bank PLC participated in the
syndication with Commercial Bank acting as the agency bank for the
facility.
"Most of the banks which participated in the syndicated loan facility
are doing so for the second time, and this is a strong vote of
confidence" said Vajira Kulatilaka, CEO, NDB Investment Banking Cluster.
The initial loan facility, also arranged by NDBIB, was to finance the
construction of the flour mill (built on the Prince Vijaya Quay of the
Colombo Port) raising Rs. 3.6 billion in 2004. Mahendra Amarasuriya,
Chairman of SFML said, "Overcoming initial teething problems, thanks to
the backing of our parent company, Al-Ghurair Group, SFML has grown
exceptionally over the last three years to become a highly successful
and profitable entity".
SFML celebrated its third anniversary of operations in Sri Lanka last
year with the launch of the retail product range under the "7 Star
brand". Recently SFML was also awarded ISO 22000:2005 Food Safety System
Certification for total compliance with the required international norms
and conventions.
Having commenced commercial operations in 2008 with a
state?of?the?art wheat flour mill in the Colombo Port, SFML now serves
both Sri Lankan consumers as well as exports to many countries across
the Far East and Africa. Today the product portfolio of the company
includes baker's flour, household flour, rotti flour, noodle flour,
whole meal flour, atta flour and semolina sold under the '7 Star' brand.
The Al-Ghurair Group of Companies, the parent company of SFML has
been in the flour milling business in the UAE for the past 35 years, and
continues their operations in the Middle East and Africa. The group
shares its expertise in flour milling, ocean transport, commodity
trading, logistics and marketing with SFML.
"Today the challenge for Sri Lankan banks is to promote foreign
investments in the country. In this context, NDB Group functions as a
one stop shop for all businesses and investments. We take pleasure in
building the confidence of the Al-Ghurair Group, and encouraging them to
further expand and scale up operations in Sri Lanka. This is our
challenging role in the task of nation building" said Russell de Mel,
Chief Executive Officer of NDB Group.
NDB Investment Bank has once again successfully executed a landmark
transaction in the country's capital market. One of the premier
investment banks in Sri Lanka continues to spearhead the investment
banking arena, raising over Rs 38 billion in funds last year and kicking
off 2012 by managing the only two IPOs to debut on the CSE to date this
year. |