Sampath Bank concludes Rs. 750 m structuring, investing in LVL Energy Fund unlisted corporate bond

Friday, 18 June 2021 00:00 -     - {{hitsCtrl.values.hits}}

LVL Energy Fund Chief Executive Officer Sumith Arangala (left) handing over the agreement to Sampath Bank Managing Director Nanda Fernando


Sampath Bank PLC announced that it had recently concluded the structuring and investment of an unquoted, secured, non-convertible, deep-discounted bond issuance for LVL Energy Fund PLC.

The Rs. 750 million instrument was tailor-made by Sampath Bank’s Corporate Finance Unit to suit the unique characteristics and financing needs of LVL Energy Fund PLC. Sampath Bank was the sole investor in this private placement with special approvals from the Securities and Exchange Commission (SEC). This is believed to be the first bond of its kind in the country by a listed company in the power and energy sector.

The Bank has a strong legacy of supporting Sri Lanka’s renewable energy sector, playing an active role in funding, and delivering relevant financial services to the sector.

Commenting on the partnership, LVL Energy Fund PLC Chief Executive Officer Sumith Arangala said, “We were highly impressed with the manner in which the officials of Sampath Bank PLC evaluated the proposal with interests of our shareholders foremost in their minds. Apart from the deep discount bond being an innovative financial instrument vis-a-vis the local banking sector, it resulted in a win-win outcome to both entities with absolute convergence of interests.”

“As a responsible financial services provider, we have always strived to support green initiatives, especially in the renewable energy sector, right from our inception. In line with this, it has been our privilege to partner with LVL Energy Fund PLC on their recent bond issuance,” said Sampath Bank PLC Managing Director Nanda Fernando. “We remain committed to supporting consumers and businesses around the island and delivering greater value to the nation, as we continue to present the future.”

Sampath Bank’s Corporate Finance Unit specialises in structuring and arranging a range of debt financing solutions, including project financing for corporates both in Sri Lanka and around the world. In project financing, the Bank’s dedicated renewable energy financing team offers investors a complete solution to their project financing needs, including advisory services with regards to approval processes, documentation and other necessary requirements. 

LVL Energy Fund PLC has diverse investments ranging from renewable energy comprising mini-hydro, wind and solar in Sri Lanka and thermal power ventures in Bangladesh as well as a 10MW hydro power generation project under construction in Nepal. These investments contribute 35MW to Sri Lanka’s national grid as commissioned plants, with 6MW in the pipeline.