SLT raises US $ 100mn to upgrade infrastructure

Sri Lanka Telecom PLC, the leader in fixed telephone services in the country has raised US $ 100 million five- year term loan facility with the support of HSBC and Sampath Bank.

HSBC acted as lead arranger and together with Sampath Bank participated in raising this loan. The loan was obtained to upgrade SLT’s telecom infrastructure.

“This further demonstrates HSBC’s capability in structuring and arranging deals of this nature. SLT is a key name in the country and for HSBC Sri Lanka as well, and we hope this will further strengthen our relationship and steer SLT towards achieving their development objectives for the benefit of the country,” HSBC Sri Lanka CEO Patrick J. Gallagher said.

He further noted that the deal stands testimony to HSBC Sri Lanka’s strong track record and capabilities in syndicated debt financing and corporate banking capabilities.

“It also reaffirms HSBC’s continued commitment to the development of the local telecommunication industry.”

Sampath Bank Managing Director Aravinda Perera said, “We have always been an active partner with SLT, providing an internet payment gateway and solutions to SLT’s client base, conveniences via banking channels harnessing Sampath’s edge in technology. Also Sampath Bank has over the years been a partner in syndicated financing for the SLT Group.”

“We are sure that this financing deal will further strengthen our relationship with SLT and contribute our share to the nations’ stride towards development through them,” he added.

“ICT infrastructure is the backbone of any country, empowering and facilitating all other industries and businesses to function at their best. This is the highest amount raised through a foreign currency loan by SLT so far and is reflective of our commitment and plans to undertake sustainable investments during this year, to support our country’s fast track development and vision to achieve a smart Sri Lanka, through an enhanced ICT infrastructure,” SLT Group CEO Lalith De Silva commented.
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Sri Lanka lenders under "due diligence" for mergers: Central Bank

Mar 01, 2014 (LBO) - Books of Sri Lanka's banks and finance companies are being evaluated by audit firms as they are moving towards mergers under a regulatory push, the Central Bank said.

"A framework for the carrying out of due diligence activities has been established, and the audit firms that are eligible to audit banks, finance and leasing companies (NBFIs) have commenced due diligence on the respective companies," the regulator said.

Companies have to be valued for mergers and their assets and liabilities checked.

Work was in progress on a merger between National Development Bank and DFCC Bank, the Central Bank said.

Sri Lanka's Central Bank is pushing consolidations in a bid to make banks bigger and less vulnerable to shock reduce the number of smaller non-bank finance companies in operation and fix several troubled ones.

The Central Bank said one-to-one meeting have been held with representatives of foreign banks who have "agreed to play an increasingly active role in the economic activities of the country."

The Securities and Exchange Commission and Colombo Stock Exhange had set up a "fast track process" to facilitate mergers. Almost all private domestic banks are listed.

The ministry of finance and inland revenue department have agreed to deal with tax issues that expected in the consolidating lenders, the Central Bank said.

The regulator said some international agencies "had conveyed their desire to provide advice and funding in the process of consolidation", without naming any lenders or agencies.

NEF the best performing Unit Trust in 2013

The flagship National Equity Fund (NEF), managed by National Asset Management Limited (NAMAL) led the Unit Trust industry again with outstanding performance in 2013. The NEF return of 17.1% in 2013 was the best of the 46 Unit Trusts in the industry according to data compiled by the Unit Trust Association of Sri Lanka.

NEF outperformed the CSE All Share Price Index (ASPI) by 12.30%in 2013 andhas delivered an annualized return of 15.1% since inception in 1992.

Avancka Herat

Avancka Herat, Executive Director and Chief Investment Officer of NAMAL, stated the NEF was able to outperform both the aggregate market and competitor funds through superior selection of equities and timely reallocation of assets. He stated that the introduction of the NAMAL Retirement Savings Plan linked to the NEF enables investors to benefit from these high returns, by investing regularly through a monthly investment plan (MIP). The Fund’s key equity holdings include Asiri Hospital Holdings, Dialog Axiata PLC, Central Finance, Ceylon Hospitals and Lanka IOC.

NAMAL is Sri Lanka’s first Unit Trust Management Company, having commenced operations in 1991 and was awarded the Best Investment Management Company in Sri Lanka in Investment Management Awards 2013 by World Finance.
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Nation Lanka Finance ‘profits surge’

‘Nation Lanka Finance PLC (CSE:CSF) has recently set another industry example by turning around the finance company by wiping out losses to make profits. NLF reported a consolidated net profit of Rs.39 million during the nine months ended December 31 2013 compared to a loss of Rs.177 million during the same period in the previous financial year. During the period in focus, net interest income has increased to Rs.380 million whilst net operating income rising to Rs.597 million, a press release said.

‘Attributing the company’s success on factors such as growth in lending portfolio and growth in its total asset base Chief Executive Officer Charith Amarasekara said: "The asset base have increased to nearly Rs.4.5 billion with group asset base rising to Rs 5.2 billion levels. Our deposit base has also seen a healthy growth of around Rs.700 million to Rs.3.3 billion while a similar increase has been seen in our lending portfolio within a short period of nine months ending 31st December 2013," he said.

"This tremendous achievement does the talking for ourselves, for our commitment, passion and dedication and the strategic guidance from our board of directors. The growth of lending portfolio and in turn managing the NPL ratio at very lower percentage,which is now less than 5%, is more than testimony to prudent management practices we follow. While we concentrated on identifying the right customer with the required credit worthiness, we have also efficiently carried out collection and recoveries. Tribute of this success should go to each and every member of our 400 staff members whom have contributed their best to turn around our company," he added.
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