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JBIC, Mitsubishi Bank to finance Sri Lanka coastguard vessel order

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)

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