Business As Usual

Commercial Bank will expand its off-shore banking operations outside the country after raising US$ 65 million from international capital markets. Commercial Bank will expand its off-shore banking operations outside the country after raising US$ 65 million from international capital markets. The bank which is already lending actively in the Maldives is looking at other markets like Seychelles.

The US$ 65 million in two-year funds came from a syndicated loan just 75 basis points above the London Interbank Offered Rate (LIBOR), when state owned entities have paid higher rates.

“This is the largest loan facility enjoyed by a non-sovereign Sri Lankan corporate entity. Also the tenure; this loan facility is for two years with the option of going into a third year,” says Amitha Gunaratne, MD Commercial Bank.

Commercial Bank was originally looking for US$ 50 million, but a better than expected response made the bank to go for a bigger loan.

Though the Fed has been pushing rates up, international capital markets are liquid.

As a result the risk premium, charged from emerging markets, have been compressing, though the base rates the