Sri Lanka gets lower rates for 2017 syndicated loan: Finance Minister
ECONOMYNEXT – Sri Lanka has got lower rates for a syndicated loan that is now in the market, with commitments of lead managers, in a sign of stronger investor confidence, Finance Minister Ravi Karunanayake said.
"We have got much lower rates than the last loan which is a sign of investor confidence," he said.
The outlook on Sri Lanka’s ‘B+’ credit rating was upgraded to ‘stable’ from ‘negative’ by Fitch Ratings.
Bloomberg Newswires reported that Bank of Baroda, Deutsche Bank, Indian Bank, Qatar National Bank, SBI, SMBC will arrange the loan for which 450 million dollars had been committed.
The arrangers are expected to bring in other lenders to expand the syndication. The cabinet of ministers had approved up to a billion dollars to be borrowed from the loan.
Sri Lanka last year paid around 300 basis points above 6-month libor for a 700 million dollar syndicated loan. (Colombo/Mar07/2017)