IFC partners NDB to expand renewable energy project financing

IFC, a member of the Word Bank Group, will share NDB Bank’s risks to help finance a larger quantum of renewable energy projects, including mini-hydro and wind power projects in Sri Lanka.
IFC is extending a $12.5 million risk-sharing facility to NDB Bank to support the country’s power-generation capacity while addressing climate change. The project is expected to produce economic benefits for local project developers, including small and medium enterprises. The initiative is part of IFC’s strategy to help the private sector mitigate climate change impacts while continuing to meet significant infrastructure gaps in South Asia.
“Lucrative mini-hydro energy options are becoming scarce while opportunities in wind power are growing. Bankers now need to secure projects with a different risk profile for funding,” said Russell de Mel, NDB Bank’s CEO. “The risk sharing agreement with IFC protects NDB Bank from possible risks and enables expanding its exposure to renewable energy projects,” he explained.
IFC will share its financing, project-structuring capability, and benchmark data for renewable energy technologies with Sri Lanka. IFC also will further enhance NDB Bank’s ability to appraise projects using these technologies.

BOC Rupee debentureissue oversubscribed

Bank of Ceylon, the largest commercial bank in Sri Lanka, launched its public issue of debenture on 1st June 2010. The issue was made for Rs. 3 Billion with latitude to be increase to Rs. 5 Billion in the event of an over - subscription.
BOC announced that the debenture was able to mobilize Rs. 5.776 billion resulting in an over-subscription by 1.925 times, in 14 market days. The excess amount will be refunded.
This debenture, attracted the highest ever amount raised by a debt instrument in the Sri Lankan market by any institution. Furthermore, this is the highest rated listed Debenture that now exists in the market.
The Debenture has been rated as A (-) lka by Fitch Rating Agency.
The objectives of this issue is to provide an opportunity for (a) investors to yield attractive regular returns over a period of five years (b) to increase Tier II Capital, thereby enhancing capital adequacy ratio and single borrower limit, and (c) strengthen the liquidity position by mobilizing long term funds.
Investment Banking Division of Bank of Ceylon acted as managers to the issue.