HSBC says its Sri Lankan operation has successfully raised funds for the government this year, including a US$ 33 mn long-term loan to develop the Northern peninsular.
The bank also recently acted as the single largest lender under a syndicated US$ 100 mn loan the government borrowed recently.rn
rnStructured by Citibank N.A., the five-year loan was backed by the Japanese government quote s Nippon Export & Investment Insurance (NEXI) and carried a concessionary interest rate of just under 200 basis points above the London interbank offered rate (LIBOR).rn
rnProceeds of the loan will go to fund the government quote s tertiary education programme, which aims at improving the skills of unemployed youth to face the current changes in the labour market.rn
rnIn June this year, HSBC raised around US$ 33 mn for the Ministry of Rehabilitation, Resettlement & Refugees to develop the infrastructure in the Northern and Eastern provinces. rn
rnThe 13 'bd year loan carries an interest rate of just under 200 basis points over LIBOR and will come through two separate facilities.rn
rnThis is the longest tenure offered to the Government of Sri Lanka, says HSBC CEO, Mark Humble.rn
rnLast year, HSBC undertook the role of lead arranger and lender, syndicating a loan facility of US$ 107 mn for Bank of Ceylon. Around 20 percent of the funds syndicated were from HSBC.rn