(MENAFN - Khaleej Times) Mashreq, one of the UAE's leading financial institutions, successfully closed its second syndicated facility in 2011 for Sri Lanka's largest bank, Bank of Ceylon, or BOC.
The 140 million facility, which was successfully concluded during a time of substantial disruption in financial markets, reflects the syndicate members' faith in the financial standing of BOC.
The deal involved 10 participating banks from around the region, namely Bank Sohar, Doha Bank, the Arab Investment Company, Union National Bank, Askari Bank Limited, Bank Al Falah Limited, Burgan Bank, Emirates NBD and BankDhofar. Mashreq acted as the mandated lead arranger, book runner and facility agent for syndication, which took place in a signing ceremony at the BOC headquarters in Colombo.
This is the second time that BOC has tapped the syndicated loan market in 2011, with the first in April for 175 million. Both the transactions were significantly over-subscribed.
BOC general manager W.A. Nalini expressed deep satisfaction in Mashreq's ability to assist close the syndicated facility in record time, amidst volatility in global markets.
"Sri Lanka is an important market in the region due to the strategic bilateral and trade relations with the UAE and other countries. Mashreq along with other key partner banks have been instrumental in delivering the facility despite the current global liquidity conditions continuing to be difficult. Our plans include going forward exploring opportunities with leading institutions from the UAE to assist BOC with capital raising," Mashreq executive vice-president and head of international banking group John Iossifidis said.
The success of the transaction once again reinforces the attractiveness of Sri Lanka in the regional loan market and the increasing confidence various financial institutions have been demonstrating in the rapidly evolving credit industry of the country.
BOC was able to tap a whole set of new investors through this syndication. BOC's acceptance among a wider network of International investors is a testament towards prosperous future dealings.