HNB raises US$ 50 m overseas loan
Hatton National Bank PLC (HNB) yesterday signed an agreement to raise
US$ 50 million through a 5 year long term loan from the China
Development Bank Corporation (CDB).
This is part of the bank's capital raising plan which commenced in
mid-2011 to raise over Rs. 20 billion in equity and debt capital. Under
the programme the bank has thus raised over Rs. 18.5 billion through a
combination of tier I capital, tier II capital and senior debt to
finance the development in post war Sri Lanka. China Development Bank is
one of the state owned banks of the People's Republic of China with a
total asset base of approximately US$ 1 trillion. It has successfully
managed the balance between growth and risk as indicated by the NPA
level which has been below 1% over the past 8 years.
China Development Bank is the strongest rated bank in China that has
been awarded an international credit rating equivalent to the sovereign
rating of China by Fitch Ratings and an international rating which is
one notch below the sovereign rating by Standard and Poor.
CDB has entered into financial collaboration agreements with over 50
countries around the globe including BRICS countries, ASEAN countries
and European nations.
This is the first ever transaction by China Development Bank with a
private bank in Sri Lanka and it marks the beginning of a continuous
co-operation between the two parties for mutual benefit.
The agreement was signed by Dr Ranee Jayamaha, Chairperson and
Rajendra Theagarajah Managing Director / CEO on behalf of Hatton
National Bank PLC and Wei Peng Deputy General Manager Guangxi branch on
behalf of China Development Bank Corporation.
Speaking at the occasion, Dr Ranee Jayamaha, Chairperson of Hatton
National Bank PLC stated that “the funds raised from China Development
Bank, will boost the loanable funds available to HNB and the bank hopes
to benefit from the co-operation and new relationship with the China
Development Bank in the future”.
Rajendra Theagarajah Managing Director/ CEO of Hatton National Bank
PLC commented that “the ability of the bank to raise funds during a
short period of time, from a well reputed foreign source, at a very
attractive rate of interest is a testament to the strong and sustainable
growth recorded by the bank over the past”.
Qui Xiaoyu from China Development Bank said, “This US $ 50 million
loan symbolizes the strong relationship between our two banks. CDB is
willing to provide financing and other supports to Sri Lanka and also
willing to explore more opportunities for cooperation with HNB”.