BOC raises US $ 200mn via syndicated loan
Sri Lanka’s state-run Bank of Ceylon (BoC) yesterday announced the signing of a one-year syndicated US $ 200 million loan facility arranged by Emirates NBD Capital Ltd Dubai.
According to BoC officials, this syndication was concluded at the lowest all- inclusive rate of below 3 percent per annum.
“We have set a benchmark with this rate and this loan proves the confidence of international financial institutions and investors in BoC and Sri Lanka,” BoC Director and Acting Chairman Raju Sivaraman said.
The proceeds of the syndication will be utilized for general corporate funding and trade finance purposes.
He further stated that the total book size reached US $ 300 million during the syndication, representing an impressive oversubscription of 100 percent and the facility was finally closed at an increased amount of US $ 200 million from the initial target of US $ 150 million.
Fifteen banks from across the globe joined the syndication including Emirates NBD, the sole Book Runner and Standard Chartered Bank, also the Mandated Lead Arranger, which equally contributed US $ 16.67 million each.
Other banks include Axis Bank Ltd. DIFC branch, Bank of Baroda, Burgan Bank S.A.K, The Commercial Bank of Qatar, Gulf Bank KSC, Indian Overseas Bank Singapore, National Bank of Abu Dhabi PJSC, United National Bank PJSC joining as Mandated Lead Arrangers, Doha Bank joining as Lead Arranger, Askari Bank Ltd, First Gulf Bank PJSC, Habib Bank Ltd joining as Arrangers and Banquede Commerce et de Placements joining as Lead Manager.
According to officials, three foreign banks operating in Sri Lanka as well as four Middle Eastern banks had also bid for this loan facility.
“Emirates NBD Capital is one of the leading financial institutions with a strong track record in the syndicated loan market. This is a landmark transaction for us mainly because it’s below the 3 percent rate,” Emirates NBD CEO Mohammed Wajid Kamran stated.
BoC’s current long-term credit rating is B2/ Stable by Moody’s Investors Service and BB-/ Stable by Fitch Ratings.