HSBC dials largest private sector ECA deal worth $ 100 m in Sri Lanka for Etisalat

HSBC yesterday announced the successful signing of a US$ 100 million facility supported by ONDD to Etisalat Lanka Ltd., (ELPL), one of the largest mobile telecommunications companies in Sri Lanka.  

ONDD is the Belgium Export Credit Agency (ECA). This transaction becomes the largest ECA transaction in the Sri Lankan private sector to date and the first ECA financing to ELPL, the HSBC said.

The Bank acted as the Sole Arranger, Sole Lender and Facility Agent for the financing of ELPL’s strategic 3G expansion program, including the supply of equipment by Alcatel-Lucent.

Parallel to the ECA transaction, a complementary US$ 25 million commercial facility was arranged by HSBC, demonstrating the bank’s capabilities and strong commitment to the development of the country and the telecommunication sector.

Commenting on this landmark transaction, HSBC Sri Lanka and Maldives Chief Executive Officer Nick Nicolaou said: “Etisalat is a considerable force in the telecommunication industry in Sri Lanka, and we are pleased to have led this transaction to support their expansion plans and help facilitate advanced technological solutions to its growing customer base and the industry as a whole.”

Commenting on the groundbreaking agreement, Etisalat Lanka CEO/Director Dumindra Ratnayaka said: “Etisalat strongly believes in the growth potential of Sri Lanka and we want to support the ongoing development by providing the latest in technology to the country. The support received from ONDD and HSBC, is representative of the confidence both parties retain in the company. The strong partnership with HSBC, ONDD and Alcatel-Lucent will now enable us to offer the best in technology and services to our customers.”

He added: “We have continuously introduced new telecommunications innovations, not just to the country, but also the region; the most recent being the first operator in Sri Lanka to launch DC HSPA+ technology, a clear boost to the mobile broadband service in Sri Lanka. We are pleased to have HSBC and ONDD support us in our ambitious expansion and development plans.”

Etisalat Group remarked: “Etisalat Group is pleased to announce the sign up of its first ECA transaction with HSBC & ONDD for Etisalat Lanka. We would like to extend our appreciation and thankfulness to our relationship bank HSBC along with ONDD and Alcatel-Lucent for their unwavering commitments and arduous efforts throughout this remarkable transaction and for crystallising that project and making it tangible.”

“We have developed a strong and fruitful partnership with Etisalat,” said Marie-Laure Mazaud, Global Head of Project Finance and Credit, Alcatel-Lucent. “We are very proud to support Etisalat’s deployment strategy in Sri Lanka and other countries where it is expanding its footprint. Once again, ONDD’s support of Alcatel-Lucent in its international operations, as demonstrated by this key transaction with Etisalat, provides a powerful tool for Alcatel-Lucent to help its customers meet and diversify their financing needs worldwide.”

As one of the most powerful players in Sri Lanka’s telecommunications industry, Etisalat has explored new possibilities in the domain of communication innovation over the years. Driving innovation, quality and value with a customer centric service, Etisalat has surpassed four million subscribers to date and is the fastest growing telecommunication network in Sri Lanka.

Etisalat offers Sri Lanka’s most cutting edge Internet solutions with Dual Carrier HSPA+ and is also a key stakeholder of Sri Lanka’s first eBook store – www.thebookhub.lk. The company is further a committed partner of the Etisalat Web Patashala program, an e-learning platform operated in conjunction with the State Trading Corporation and the Ministry of Education.

HSBC Sri Lanka, having established its presence in 1892, is the largest foreign bank in the country. The bank demonstrates an impressive track record of landmark deals and product innovation in the international and domestic debt capital and project finance segments.

Over the past few years HSBC has successfully raised financing in excess of US$ 3 billion to finance projects in telecommunication, highways and bridges, roads, flyovers, solar irrigation, electricity and port development. It is the only bank in Sri Lanka to have consecutively won five bond mandates by the Government of Sri Lanka starting with its inaugural issue in 2007 and subsequently in 2009, 2010, 2011 and 2012.