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Sri Lanka to buy UK steel bridges with HSBC finance

Oct 20, 2011 (LBO) - Sri Lanka will buy 210 steel bridges from UK's for 35 million sterling pounds with financing from HSBC and state-run People's Bank, minister Keheliya Rambukwelle said. The cabinet of ministers had approved the financing of the deal with 28.22 million Sterling pounds from HSBC and 6.779 million pounds from People's Bank, he said.

The bridges will be used to connect rural villages around the island, he said. They will be supplied by Cleveland Bridges UK.

HSBC will give a 13 year loan at the 6-month London Interbank offered rate plus 2.0 percent with a three year grace period. People Bank will provide its financing at Libor plus 4.75 percent with a 14 year pay back.

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