Apr 01, 2014 (LBO) – Standard Chartered Bank said it had structured a 150 million US dollar equivalent Islamic finance facility for state-run Sri Lankan Airlines which was partly secured by a government guarantee and receivables. In 2012 SriLankan raised a 175 million US dollar equivalent facility from Gulf banks.
“The proceeds of the facility will be used towards the refinancing of an existing facility and provide additional capital to support the airlines re-fleeting exercise,” Colin Pawley, Head of Client Coverage at Standard Chartered commenting said in a statement.
Standard Chartered said it was the sole structuring bank and lead arranger for the multi-currency senior secured Islamic structured term financing facility.
Other participating banks included Abu Dhabi Islamic Bank, Al Hilal Bank, Noor Bank and United Bank Limited.
“We are particularly encouraged by the fact that international banks have come forward to finance the airline by taking into consideration the growth prospects not only of the airline but that of the country,” Yasantha Dissanayake, Head of Finance at SriLankan Airlines said.