Sri Lanka’s conglomerate LTL Holdings Group, upon securing approvals to develop a 10 MW hydro power project in Nepal, signed syndicate loan agreements securing finance for the project in a landmark transaction.
Sanima Bank, one of the leading banks in Nepal, arranged a Syndicate Debt package of US$ 15 million to finance the project on an optimal leverage of debt to equity mix.
Century Bank and National Credit & Commerce Bank are the other syndicate partners. This transaction being structured on project financing basis, is an indication of the shear confidence the international banking community is having on a renowned and well established global power sector player such as LTL.
LTL was assisted in the transaction by Accede Capital of Sri Lanka. LVL Energy Fund PLC will invest in the project along with LTL.
LTL’s latest hydro project is located in western Nepal in Darchula district. It will be a run of the river high head power plant in the Makari River.
According to Sameera Ganegoda, Vice President (Renewable Energy) of LTL, the project is estimated to be completed by end of 2019.
Securing all important finance, facilitates the entry of any Sri Lankan company to the energy market in Nepal, whilst the project being financed on project financing basis would be a catalyst for other regional players to explore the vastly untapped hydro potential in Nepal.
LTL is the leading power sector company in Sri Lanka with more than Rs. 25 billion revenue. Having earned experience in Sri Lanka, LTL has recently been aggressive in expansion globally.
Add new comment