Sampath Bank raises Rs. 7.5 b from US$ syndicated loan

Sampath Bank Plc yesterday concluded a successful fund raising through a Syndicate Loan worth Rs. 7.5 billion.

The syndicate which opened for a US$ 30 million loan was oversubscribed over twofold and closed at $ 62.5 million.

Sampath Bank said this was its second venture to raise funds off shore, having raised $ 45 million in 2007 through a similar syndication, which was paid off as scheduled.

“The confidence of the foreign investors in the Bank’s performance to date and its ability to sustain and grow was amply evidenced by the interest shown in the current syndication by the foreign markets,” Managing Director Aravinda Perera said.

Sampath Bank’s strong balance sheet and related financials coupled with its tremendous growth has resulted in the overwhelming response to the syndicate participation amidst the prevailing global economic issues

The deal was put together by the Mandated Lead Arrangers Bank Muscat S.A.O.G, Citigroup Global Markets Asia Limited and Emirates NBD Bank PJSC. The subscribers to the Syndication were sourced mainly from the Middle East were: Mandated Lead Arrangers

BANKMUSCAT S.A.O.G. ($10M); CITIGROUP GLOBAL MARKETS ASIA LTD., ($ 10M), EMIRATES NBD BANK PJSC ($10M); Lead Arranger: BANK SOHAR S.A.O.G. ($10M), Arranger: UNITED BANK LIMITED ($7.5 M); Lead Managers: UNION NATIONAL BANK PJSC  ($5 M); BMI BANK B.S.C. (C.) ($ 5M); BANK ALFALAH LIMITED ($5 M).

The funds raised from the above Syndication will be utilized to meet the forecasted asset growth of Sampath Bank. The Bank showed a growth Rs. 43.5 billion in its advances portfolio for the year 2011, a growth of over 35%. The growth forecast for 2012 is Rs. 38 billion which is 23%.

The Bank has grown from strength to strength over the past few years, and the above Syndication will help to sustain that growth over the next year.

In line with Central Bank’s encouragement for Sri Lankan Banks and Corporates to raise offshore funds, Sampath Bank has been one of the first private banks to tap the off shore market for funds.