People’s Bank enters into $ 150 million syndicated loan facility

People’s Bank concluded a syndicated loan facility for US$ 150 million. The facility was originally arranged for US$ 50 million, however since it was significantly oversubscribed, the deal was upsized to US$ 150 million. Over 10 European, Middle Eastern and Asian banks participated in the transaction reaffirming the strength and stability of People’s Bank.

This was the first time that People’s Bank tapped the international markets and incidentally this milestone was reached whilst celebrating the Ban k’s 50th year of operations which fell this year.

“People’s Bank’s success in its debut international loan syndication demonstrates the confidence placed by the international financial community on the bank’s strong fundamentals, its standing in the local banking industry and the positive growth outlook of the country,” Chairman W. Karunajeewa said.

Despite the current global financial uncertainties, the offering drew strong international support. The transaction reaffirms the leading position that the bank plays in being a key driver for economic growth opportunities in Sri Lanka.    

While expressing his gratitude towards the banks that supported the facility and the faith placed upon People’s Bank CEO and General Manager N. Vasantha Kumar said that “this facility paves the way to tap new investors and funding partners. The bank’s acceptance among a wide network of international investors augers well for its future dealings.”

With a strong franchise and island wide branch network, People’s Bank is well positioned to benefit from the country’s huge growth potential. People’s Bank achieved the highest ever profit before tax of Rs.  8.7 billion and its asset base reached Rs. 548 billion as at end of 2010.  The Bank is on track to reach even higher levels during FY 2011.  People’s Bank has been rated AA- (lka) by Fitch Ratings Lanka Limited and AAA by RAM Ratings Lanka Limited.