JBIC, Mitsubishi Bank to finance Sri Lanka coastguard vessel order
Mar 13, 2017 12:04 PM GMT+0530 | 0 Comment(s)
ECONOMYNEXT - Sri Lanka's Colombo Dockyard Plc has proposed financing from JBIC, Bank of Tokyo Mitsubishi UFJ for a $180 million offer for three offshore patrol vessels for coastguard duties.
Sri Lanka has to provide a sovereign guarantee for the loans, according to a proposal submitted to the cabinet of ministers.
JBIC will provide 40 percent of the loan, MUFJ also 40 percent and the balance will come from a tied commercial loan facility.
Colombo Dockyard is 51 percent owned by Onomichi Dockyard Company Ltd of Japan. Other key shareholders of the Colombo-listed company include Sri Lanka's Employees Provident Fund, Sri Lanka Insurance Corporation and Sri Lanka Ports Authority.
The firm has offered to supply three offshore patrol vessels based on a hull design by VARN Marine of Canada.
The cabinet of ministers last week gave the go-ahead to negotiate the offer. (Colombo/Mar13/2017)