HSBC Sri Lanka tops up global syndication deals to US$ 250 m

Sampath Bank raises $ 45 m. via global giant after big demand for original $ 25 m. issue

HSBC Sri Lanka has increased the total value of international syndicated deals to over US$ 250 million this year with the conclusion of the latest exercise for Sampath Bank.

Sampath Bank Ltd., one of Sri Lanka’s fastest growing local banks in Sri Lanka and HSBC, Sri Lanka’s largest foreign bank, last week announced the successful completion of a US$45 million three-year syndicated loan facility for Sampath Bank Ltd. This agreement was signed in November 2007.

The facility is further testimony of HSBC’s capability of arranging offshore syndicated loans in the country. In May 2007, HSBC arranged a US$210 million facility for Bank of Ceylon, which is the largest syndicated loan for a Sri Lankan entity.

Strong demand for the loan allowed for an increase in size from the original US$25 million to US$45 million. The over-subscription was also a clear indication of the confidence that the international investor community had in Sri Lanka and a syndicate of 09 banks was built from Asia and the Middle East.

The success of this loan syndication reinforces, the capability of the global giant HSBC, being able to draw on their international expertise and reach, to attract international investors to Sri Lanka at highly competitive pricing. The credit strength of Sampath Bank Ltd., and the distribution power of HSBC ensured a very satisfactory response to this syndication. Road shows were held in Singapore and the UAE.

HSBC, one of the largest banking and financial services organizations in the world is the leading financing solutions provider to borrowers throughout Asia. In the year 2006, HSBC was recognized as the #1 Bookrunner in the Bloomberg Asia (excluding Japan)

Syndicated Loan League Table. Further the International Financing review has awarded the bank with ‘#1 in the Asia Pacific syndicated loan league tables’, ‘China Loan House of the Year’ and ‘European Loan House of the Year’. HSBC’s investment banking business focuses on, origination and execution of corporate finance, mergers and acquisitions assignments, divestitures, financial restructurings and associated financing solutions.

And this, combined with Bank’s global market expertise, ensures HSBC’s ability to provide clients with the full suite of strategic financing including debt capital markets, loan syndication; equity capital markets, equity-linked capital markets, structured and asset backed securities and leveraged finance.

HSBC’s long-term commitment to its clients in emerging markets is delivered through the Bank’s coordinated coverage and global-local infrastructure. The Bank’s emerging markets expertise and experience in complex negotiations and cross-border activities has earned HSBC the respect of its clients.

The Fitch AAA (sri) rated HSBC, as not only the largest foreign commercial bank in the island but also the 5th largest private commercial bank in Sri Lanka. HSBC Sri Lanka with its global network and local reach offers customized client-led solutions in the corporate and investment banking businesses. With fourteen branches and a staff of over 1,800, HSBC undoubtedly has an impressive presence in the local banking community, and has been at the forefront of innovation, re-shaping the competitive landscape in the local banking industry.

Sampath Bank, a broad based and profitable bank is AA- (sri) rated by Fitch. The Bank is regarded as being the front-runner in introducing state of the art electronic banking delivery channels amongst local commercial banks. The bank has assets in excess of LKR 100 Bln and a capital base of LKR 6.1Bln.

Participants in this US$45Mn Syndicated Loan for Sampath bank Ltd:
Bookrunner: Hongkong and Shanghai Banking Corporation Limited
Co-ordinating Arrangers: Hongkong and Shanghai Banking Corporation Limited, Mashreqbank psc, Habib Bank

Lead Arrangers: Bank Muscat S.A.O.G., Bank BNI
Co-Arrangers: Bank UBAE, ICICI Bank, National Bank of Dubai PJSC, Export Import Bank of the Republic of China, Habib Bank AG Zurich
Facility Agent: Hongkong and Shanghai Banking Corporation Limited