HSBC arranges Rs 5 billion syndicate loan for Mobitel

HSBC has arranged a Rs 5 billion syndicate commercial loan for Mobitel (Pvt) Ltd. This facility was provided in support of Mobitel's GSM Stage 3 expansion and will contribute towards extending their network coverage to rural areas outside the greater Colombo area as well as to roll out their 3G network.

The success of this loan epitomises HSBC's resourcefulness as well as the bank's continued commitment to develop and support the local telecommunication industry.

Chief Executive Officer of HSBC, David J H Griffiths commenting on the deal said "Mobitel is a considerable force in the telecommunication industry in Sri Lanka, and HSBC is proud to contribute to their growth by arranging this loan facility.

Being one of the largest rupee syndications in Sri Lanka, this goes to show the confidence and trust investors have in Mobitel."

Chairman, Sri Lanka Telecom Mobitel (Pvt) Ltd Asoka Weerasinghe de Silva said "We are proud to be associated with HSBC as the lead arranger, as well as the BoC, People's Bank, HNB, Sampath Bank and NSB.

These banks have been with us from the beginning of the GSM launch. This funding arrangement is for the launch of 3G services and 2G expansion under GSM Stage 3. The total investment of Mobitel on GSM services would amount to over USD 200 million with this investment."