April 27, 2007 (LBO) – State-owned Bank of Ceylon’s syndicated dollar loan has been able to raise more money than originally envisaged.
(US Dollar = 110 rupees)
Updated There had been substantial interest from prospective lenders allowing the loan size to be enhanced, an official said.
The deal, arranged with bookrunner HSBC, was earlier scheduled for late last year. Bank of Ceylon was forced to pull out, after it clashed with a Citigroup 100 million dollar three-year syndication for the Sri Lankan government at the same time.
The Bank is not expected to covert the entire loan of US$210mn into Sri Lankan rupees, but use a part of it to meet is dollar-based banking activities.
The bank is the principal lending bank to Sri Lanka’s government. In 2006 it had more than 700 million dollars lent to the government.
It lends its own foreign exchange funds in its off-shore banking units as well as engaging in on-lending dollars raised from third parties.
The bank is rated AA(lka) by Fitch.
Last year Bank of Ceylon posted consolidated net profits of 2,945 million rupees, while its group balanc