Five respond to Govt.’s invite for Foreign Currency Term Financing Facility RFPs

Wednesday, 22 July 2020 00:35 - - {{hitsCtrl.values.hits}}

HSBC, SBI, Credit Suisse, China’s Industrial and Commerce Bank, SL’s Acuity Partners send proposals
Notice for RFPs announced in mid-June for GOSL to raise USD-denominated FTFF up to limit of $ 500 million in 2020
Proceeds of FTFF to be used for financing expenditure as approved in VoA for fiscal year 2020

By Chandani Kirinde

The Finance Ministry has received proposals in response to the notice calling for Request for Proposals (RFPs) from domestic banks incorporated in Sri Lanka and international banks/investment houses for a proposed Foreign Currency Term Financing Facility (FTFF) for the Government of Sri Lanka (GOSL).

The proposals are from: Hongkong and Shanghai Banking Corporation Limited and/or its affiliates; State Bank of India, Singapore Branch; Credit Suisse AG, Singapore Branch and/or its affiliates; Industrial & Commerce Bank of China (London) PLC.; and Acuity Partners Ltd. of Sri Lanka.

The proposals are in response to the notice calling for RFPs for FTFF on 17.06.2020. As of 17 .07.2020, these proposals have been received, the Finance Ministry said.

The RFPs is for the Government of Sri Lanka (GOSL) to raise a FTFF denominated in United States Dollars (USD) up to a limit of $ 500 million in 2020.

The FTFF is expected to be raised at a fixed rate or a floating rate, linked to the $ 6 Month LIBOR or its successor with a maturity period of one year or more.

The proceeds of the FTFF will be used for the purposes of financing the expenditure as approved in the Vote on Account (VoA) for the fiscal year 2020.

The Finance Ministry said that the RFPs are not a commitment on the part of GOSL to accept any proposals, and that the Government reserves the right to reject any or all the proposals without assigning any reason, and also reserves the right to negotiate the terms of the proposals with the revenant bank(s)/investment house(s). GOSL also reserves the right to engage with one or more banks or investment houses for the proposed FTFF.