HNB arranges financial closure of Rs. 5.4 b syndicated loan to fund new multi-storey Odel Mall

From left: Softlogic Holdings Head of Corporate Finance & Treasury Hiran Perera, HNB Deputy General Manager, Corporate Banking Ruwan Manatunga, Softlogic Holdings Chairman/Managing Director Ashok Pathirage, Sampath Bank Senior Deputy General Manager, Corporate Banking Shashi Jassim and Bank of Ceylon Deputy General Manager – Corporate Banking & Offshore Banking Russel Fonseka

HNB yesterday announced a breakthrough partnership with popular retail department store Odel Plc to lead the syndication of a Rs. 5.4 billion loan to fuel the expansion of its flagship store at Alexandra Place, Colombo 7.

The syndicated loan, which will cover the majority of the total cost of construction of the new Odel Mall amounting to Rs. 9 billion, was arranged by HNB in partnership with Sampath Bank PLC and Bank of Ceylon with each party participating equally in the loan. 

HNB DGM Corporate Banking Ruwan Manatunga signed off as the Lead Arranger together with Sampath Bank Senior DGM Corporate Banking Shashi Jassim and BOC DGM Corporate and Offshore Banking Russel Fonseka.

“HNB is a bank which is a firm believer in the power of local businesses to build internationally renowned Sri Lankan brands. Hence it is a true pleasure for HNB to serve as lead bank to the syndicated loan that is powering the timely expansion of Odel. Particularly at a time when local consumers are gradually increasing their spending while larger numbers of tourists enter the country each day, these investments by Odel will almost certainly help to position the store as a premium destination for any lifestyle requirement, on par with the very best experiences available internationally,” Manatunga stated.

The new development will consist of multiple floors of retail and recreational space of over 240,000 square feet that will cater to the life style requirement of customers by offering activities with a range of internationally-renowned branded items and high quality local products as well as cinemas, food courts and several fine dining restaurants, all under one roof.

The complex will be constructed as two seven stories structures with five basement floors for parking comprised over 525 parking bays. The mixed-development complex will also include 39 luxury apartments on the sixth and seventh floors overlooking the city of Colombo.

The entire range of retail products under the Softlogic umbrella including Odel, Softlogic Brands and Softlogic Retail will occupy approx. 50% of the retail space available in the new Odel Mall and the balance 50% will be rented out to selected group of retail brands food courts, themed restaurants, supermarkets while P.V.R. Cinemas, India’s second largest theatre operator, is already appointed to operate the seven movie theatre complex.

With the major part of the piling work completed and the appointed civil contractor already in the process of mobilising, this landmark project is expected to be completed in 2020.

While appreciating the efforts of Sampath Bank and Bank of Ceylon in successfully achieving the financial closure, HNB Head of Project Finance Majella Rodrigo elaborated that HNB’s Project Finance Division has supported in arranging several large-scale syndications during the last 12 months, especially in projects associated with infrastructure development.

Operating across 251 customer centres island-wide, HNB PLC is Sri Lanka’s largest private sector commercial bank, having been declared Bank of the Year 2017 by the prestigious British financial magazine The Banker, in recognition of its performance as the most profitable banking group and for introducing unprecedented innovations to the domestic banking industry.

The bank has continuously won accolades in recognition of its outstanding contributions towards the elevation of service standards using cutting-edge technology. The bank has most recently been adjudged ‘Best Retail Bank 2018 in Sri Lanka’ for the 10th time while also being recognised for managing the ‘Best Microfinance Product 2017 within the Asia Pacific Region. 

HNB was the first local bank in Sri Lanka to receive an international rating on par with the sovereign from Moody’s Investor Services while maintaining a national long-term rating of AA- (lka) from Fitch Ratings Lanka Ltd., and amongst the Top 1,000 banks in the world by The Banker.