John Keells Hotels provides Rs. 2.45 bn corporate guarantee to People’s Bank

cinnamon-bentota

Oct 09, 2019 (LBO) – John Keells Hotels has given a corporate guarantee for 2.45 billion rupees to People’s Bank, in respect of a long-term loan facility obtained by Ceylon Holiday Resorts Ltd, a subsidiary company.

The company said in a stock exchange filing that the said loan facility was obtained by Ceylon Holiday Resorts to partially finance the redevelopment cost of hotel Cinnamon Bentota Beach.

Scheduled to reopen in December 2019, the new design of this 159-room, 5-star property integrates designs inspired by world-renowned architect Geoffrey Bawa.

The company further said that the corporate guarantee was given on the 09 October 2019.

A corporate guarantee is an agreement in which one party, called the guarantor, takes on the payments or responsibilities of a debt if the debtor defaults on the loan.