Sri Lanka gets US$1bn eight-year loan from China Development Bank

ECONOMYNEXT – Sri Lanka has got a billion dollar loan from China Development Bank (CDB) with an eight-year maturity and three-year grace period, the central bank announced in a statement. 

It did not say what the interest was except that “the interest cost is highly competitive and linked to 6 month US dollar LIBOR (London inter-bank offered rate).

“The repayment will be in equal semi-annual payments after the grace period. The resulting inflow increases the official foreign reserves by US$1,000 million.”

The central bank said the government had invited to submit proposals from international and domestic banks and investment houses for a Foreign Currency Term Financing Facility (FCTFF).

This was to be denominated in United State dollar, Japanese yen or euro or of their combination up to a limit of US$1,000 million in March 2018.

Four proposals were received from international and domestic banks and investment houses.

“A Cabinet appointed Steering Committee and Technical Evaluation Committee chose China Development Bank as the syndicate arranger based on least cost and longer maturity period given in its proposal submitted,” the central bank said.
(COLOMBO, 17 Octber, 2018)

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