Power Loan

Mar 26, 2008 (LBO) – HSBC Sri Lanka said it has arranged 152.2 million euros (230 million US dollars) in debt for a 300 MegaWatt thermal power plant in the island, from US and European export credit agencies. The credit has a 100 percent unconditional guarantee from the government of Sri Lanka.

The rates were not disclosed.

HSBC said it was the largest export credit agency funding in the island and runs up to 14 years.

“The loan facility is a new tenor set in the offshore commercial loan market and has set a benchmark in being the longest tenor ever achieved in Sri Lanka for offshore commercial debt,” Trevine Fernandopulle, deputy chief executive officer at HSBC Sri Lanka said.

The plant is built by West Coast Power (Private) Ltd, and is promoted by Lakdhanavi Limited, an independent power producer affiliated to state-run Ceylon Electricity Board (CEB) and Asea Brown Boveri, Lanka Electric Company, a state-run electricity distributor, and the Employees Provident Fund, a private sector retirement fund.

The plant has a 30/70 debt equity mix, HSBC said. It has a 25-year power purchase agreement with the state-run CEB and is constructed in Kerawalapitiya, north of Colombo.

“On reque