NDB facilitates regional expansion

Last December NDB launched a new chapter with the group's Project and Infrastructure Financing Department and Investment Banking units working seamlessly to facilitate the regional expansion of LTL Holdings Group (LTL), one of Sri Lanka's leading engineering companies.

LTL commissioned its first thermal power plant 'Raj Lanka Power Company Limited' in Bangladesh last month where the NDB Group played a pivotal role in structuring, arranging and partly financing this venture.

Due to the competitive bidding process, LTL had to work with thin margins in making this project successful. NDB Group's investment banking units in Sri Lanka and Bangladesh, NDB Investment Bank and NDB Capital, structured an innovative product for fund raising in the Bangladeshi capital markets which ultimately reduced the cost of local currency borrowing for the project.

The remainder of the project's debt component was financed via a US dollar loan syndicated from the Sri Lankan banking sector with NDB committing US $ 12 million. The NDB Investment Bank and NDB Capital skillfully facilitated this financing arrangement despite the complications stemming from the dual jurisdictions and multiple financiers of the project.

LTL has commenced work on their second power plant investment in Bangladesh and NDB is a significant partner in this project as well.

CEO, NDB, Rajendra Theagarajah said, "NDB as the premier project financier in the country financed LTL's first thermal power plant in Sapugaskanda in 1999. NDB is proud to partner with LTL financially for their first off-shore power plant and hope to be part of the group's future endeavours. This is yet another step taken in NDB's strategy to make its presence in overseas project financing."

The CEO of NDB Group's investment banking cluster, Vajira Kulatilaka said, "I'm pleased with our investment banking teams in Sri Lanka and Bangladesh, which structured and executed a cross-border, multi-currency, multi-instrument syndicated funding facility which enhanced the financial viability of the project."

"When we started operations in Bangladesh, one of our main objectives was to facilitate off-shore expansion of Sri Lankan corporates. We have been successful in achieving this goal," he said.

The Vice President and Head of Corporate Banking at NDB, Buwaneka Perera said, "The NDB Group gained immense experience by arranging, evaluating and funding this challenging overseas transaction.

With the expertise gained in the cross border regulatory requirements and country specific regulations, the NDB Group is geared to facilitate overseas expansion of other Sri Lankan corporates."