HSBC arranges $ 45m syndicated loan for Sampath Bank

by Jayampathy Jayasinghe

The HongKong and Shanghai Banking Corporation (HSBC) Ltd, and Sampath Bank Ltd, successfully completed a three-year syndicated loan facility recently. A loan of US$ 45 million was syndicated for Sampath Bank Ltd through HSBC Sri Lanka. The agreement was signed last month.

CEO, HSBC Sri Lanka, David Griffith told a media briefing in Colombo that through the HSBC network they were able to attract international investors to Sri Lanka at a highly competitive price. To put the deal together road shows were held in Singapore and the United Arab Emirates. The global network of HSBC and their expertise ensured the success of the loan facility, he said.

Griffith said due to over subscription and the confidence of the international community in Sri Lanka the original loan was increased from US$ 25 million to US$45 million. A syndicate of nine banks from Asia and the Middle East had subscribed for the loan facility.

He said the HSBC had previously arranged a US$ 210 million loan facility for the Bank of Ceylon which was the largest syndicate deal for the Sri Lankan corporate sector.

The Managing Director and Chief Executive of Sampath Bank Anil Amarasuriya said the market confidence on Sampath Bank's performance and networking capability of HSBC had resulted in securing the loan. The loan will be utilised mainly for lending and offshore financial activity. The loan had helped Sampath Bank's liquidity position, he said.