Sampath Bank raises $100 m through international loan syndication
Thursday, 20 June 2013 01:08
Sampath Bank recently celebrated the success of its largest international loan transaction of US$ 100 m that was concluded in the first quarter of 2013.
“The bank’s consistent performance over the years coupled with its potential for sustainable growth have been the key driving forces in the success of this transaction and we are pleased to witness the high level of confidence placed by the off shore investors on the bank’s strategic direction,” Managing Director Aravinda Perera said.
The bank has established a great track record in the loan syndications space with this latest transaction drawing a great deal of interest from a diverse range of investors from a large number of Middle Eastern and Asian banks.
Consequently, this deal which was launched for US$ 50 million was upsized over two fold as the bank consciously decided to cap the final size to US$ 100 million to suit its cash flow requirements. The transaction was facilitated by HSBC who acted as the lead arranger and book runner.
Commenting on the syndicated loan facility, HSBC Sri Lanka and Maldives Chief Executive Officer Patrick Gallagher said: “This affirms HSBC’s strong reputation in the market as a loan distributor. It was a well-coordinated cross border effort across Debt Capital Markets, Syndicated Finance and Financial Institutions, and manifests the strength of the franchise and its execution capabilities.”
Sampath Bank has an established track record of financial performance and has achieved a strong position in the financial sector as the fifth largest commercial bank and third largest private sector bank in the country within a relatively short time frame of 25 years.
With a branch network of 210 and ATMs of 270, the bank continues to grow its presence across the country.
Sampath is rated AA-(lka) by Fitch and AA by RAM highlighting its strong credit profile, asset quality, high loan-loss coverage, improved profitability and systemic importance as key credit strengths.