$
150 m syndicated loan success a confidence booster –CB
The
Central Bank said last week that the successful conclusion
of the US$ 150 million syndicated loan reflects the
confidence the international banking community has on
Sri Lanka.
“The successful raising of this loan through a
club arrangement which has been subscribed by as many
as nine international banking institutions serves as
a confirmation of the confidence that the international
banking community has in the Sri Lankan economy and
its the medium term prospects,” the Bank said.
In accordance with the annual borrowing programme approved
by Parliament under the Annual Appropriation Act for
year 2008, the Government successfully raised a syndicated
loan of USD 150 million through a ‘Club arrangement’
under which funds are provided by a consortium of major
international banks, functioning as exclusive club members.
The loan has a three-year maturity with a yearly put
option and cost of US$ 6 month LIBOR plus a margin of
250 basis points per annum. The current US$ 6 month
LIBOR rate is 3.13 per cent per annum. Full
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