Sri Lanka plantations firms borrow from UK parent
ECONOMYNEXT – Sri Lanka’s Hapugastenne Plantations and Udapussellawa Plantations plan to take fresh loans from their parent firm, James Finlay Ltd., in the United Kingdom where borrowing costs are lower.
The funds are to finance working capital, field development and company capital spending planned for 2017, a stock exchange filing said.
Hapugastenne Plantations said its board had approved a new loan from James Finlay of $1.75 million for three years at an interest rate of 3 months London Interbank Offered Rate (LIBOR), plus 3.5 percent a year.
It also renewed an existing loan of $450,000 for two years at 4.5 percent a year.
Udapussellawa Plantations said it will get a new loan of $800,000 for three years at 3 months LIBOR plus 3.5 percent a year and renewed an existing loan of $400,000 for two years at 4.5 percent a year.
(COLOMBO, May 22, 2017)