Sri Lanka Sampath Bank raises US$100mn from syndicated loan

Mar 20, 2013 (LBO) – Sri Lanka’s Sampath Bank Plc, said it had raised 100 million US dollars from loan syndicated by HSBC, with Middle Eastern lenders being among top subscribers. Sampath chief executive Aravinda Perera said lenders mainly came from the Middle Eastern, followed by India and some EU banks.

The current loan which was priced around 4.0 percent was 50 basis points less than its first loan last year, he said.

Last March, the Sampath raised 62.5 million US dollars through a one year loan syndicated by Citi.

The proceeds were swapped with the Central Bank to cover exchange risk. A swap is also being negotiated this year, Perera said.

Chief financial officer Ranjith Samaranayake said the first loan was settled independently of the second loan, before the proceeds second loan arrived and lenders.

Perera said he had to go on roadshows and talk to potential investors last year but this year, orders had poured in and the bank had halted the syndication after reaching 130 million US dollars and distributed the loan pro-rata.

The foreign loans had helped Sampath boost credit growth to 23 percent last year and allowed them to avoid raising very high cost domestic deposits, officials said.