Financial Times

Commercial Bank raises US$ 35mln syndicated loan via SCB
The Commercial Bank of Ceylon and Standard Chartered Bank (SCB) last week signed an agreement for an internationally syndicated loan facility of US $ 35 million for Commercial Bank.

The mandated Lead Arranger Standard Chartered Bank successfully syndicated the 364-day facility, which was launched at US $ 25 million initially, and closed at US $ 50 million -- a 100 per cent oversubscription that reflected the confidence commanded by the two banks in the international arena.

Standard Chartered using their strong global presence and international debt market expertise was able to bring together an international syndicate of 12 banks, from markets and cultures as diverse as China, USA, the Middle East,
South Asia and Europe. The other banks in the syndication, excluding SCB, are Al Ahli Bank of Kuwait, Arab Investment Company, BankMuscat, Commerzbank, the Export-Import Bank of China, Gulf Bank, Mashreqbank, National Bank of Kuwait, United Bank Limited, Union National Bank and Wachovia Bank.

This is the first loan raised by Commercial Bank from international debt markets, and the Bank has decided to utilise US $ 35 million out of the US $ 50 million available, for general corporate purposes, the bank said. SCB's Sri Lanka CEO Vishnu Mohan described the success of the initiative as a high point in a long standing relationship between the two banks.

The Standard Chartered Bank, which has been present in Sri Lanka for 112 years, held a 40 per cent stake in Commercial Bank up to 1997, and remains Commercial Bank's largest correspondent bank and number one partner for all international transactions, he said.

Commercial Bank Managing Director Amitha Gooneratne said the syndicated loan facility was extremely timely as it has come at a time when the country is in need of foreign exchange.

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