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Commercial Bank of Ceylon has raised US$ 35 mn through a syndicated loan arranged by Standard Chartered Bank Colombo at slightly lower rate than the Sri Lankan government. Commercial Bank of Ceylon has raised US$ 35 mn through a syndicated loan arranged by Standard Chartered Bank Colombo at slightly lower rate than the Sri Lankan government. Priced at 80 basis points above the six month’s London interbank offered rate or LIBOR, funds from the one year issue will go towards servicing Commercial Bank’s top foreign currency borrowers.

The Bank had initially tapped the market for US$ 25 mn, but got responses from 12 foreign banks for US$ 50 mn.

Besides Standard Chartered Bank, banks such as Al Ahil Bank of Kuwait, Arab Investment Co., BankMuscat, Commerzbank, the Export-Import Bank of China, Gulf Bank, Mashreqbank, National Bank of Kuwait, United Bank Ltd, Union National Bank and Wachovia Bank joined in the syndication.

“The 100 percent oversubscription and the price we got, showed the confidence international banks have in our bank. But we have decided to take up only thirty five million dollars,” says Amitha Gooneratne CEO, Commercial Bank.

The pricing of