Sri Lanka's Sampath Bank Syndicated Loan of $ 62.5mn Raised from Middle Eastern Investors

01st March 2012, www.lankabusinessonline.com

Sri Lanka's Sampath Bank has raised 62.5 million US dollars from a syndicated loan among Middle Eastern investors which will help the bank grow its assets 23 percent in 2012, officials said.

Managing director Aravinda Perera said the bank was seeking 30 million dollars but the loan was oversubscribed to close at 62.5 million US dollars.

Ravin Basnayake, country head Citibank Colombo, a lead arranger of the deal, said the oversubscription indicates the confidence of investors in the bank.

Bank Muscat S.A.O.G, Citigroup Global Markets Asia Ltd, Emirates NBD Bank PJSC, Bank Sohar S.A.O.G had loaned 10 million dollars each and United Bank Limited 7.5 million US dollars.

Union National Bank PJSC, BMI Bank B.S.C (C.) and Bank Alfalah Ltd had contributed 5 million dollars each.

The bank said its advances grew 35 percent or 43.5 billion rupees in 2011. In 2012 the bank is targeting loan growth of 23 percent.

Sri Lanka's central bank has set a limit of 18 percent for loan growth in 2011 from domestic resources, and 23 percent with additional funding from abroad.

The floating rate one-year loan priced at an undisclosed premium over the six month London Inernbank offered rate an official said.

The proceeds would be loaned in rupees, with the foreign exchange cover provided by the Central Bank.

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