Hatton National Bank PLC (HNB) partnered with Lakdanavi Led (a member of LTL Holdings Group) to serve as Arranger / Lead Banker to a syndicated loan facility together with several other commercial Banks to develop 350 Mega Watt (MW) first ever Liquefled Natural Gas (LNG) based Combined Cycle power plant in Kerawalapitiya.
HNB together with the Commercial Bank of Ceylon PLC, National Development Bank PLC, Sampath Bank PLC and People's Bank signed off Loan Agreements to finance the setting up of Sobadanav! Ltd's ING based Combined Cycle power plant, the first of its kind in Sri Lanka.
Sobadanavi Ltd, a subsidiary of Lakdanavi Ltd has scheduled the! commissioning of the 350 Mega Watt (MW) facility in two phases where Open Cycle operation will be commissioned by April 2023 whilst the Combined Cycle operation will be commissioned by April 2024. This Is the only large power plant under construction in Sri lanka at present and it's commissioning as planned is critical to meet the expected demand rise in electricity.
The syndicated facility arranged by HNB with Commercial Bank, NDB, Sampath Bank and People's Bank Joining in as the Co-Lenders. Deputy General Manager - HNB Wholesale Banking Group Damith Pallewatte signed for the Bank together with BAH S Preena - Assistant General Manager (Corporate and Trade) of Commercial Bank.. Ishanl Palltyaguru - Vice President (Project Finance & Corporate Credit Control) of NDB, Mano] Akmeemana - Senior Deputy General Manager (FCBU/ Corporate Finance) of Sampath Bank and Kumari Senaratne Deputy General Manager (Corporate Banking) of People's Bank, The signing took place at the Conference Centre of HNB Towers on 1 November 2021.
"We are proud to play the lead role in financing a project of national -importance R. Pallewatte said and added, This being a LNG based power plant first of its kind in Sri Lanka, will provide a solution for growing global climatic issues and fits in with the Bank's role in social and environmentally sustainable solutions.
AHNB Assistant General Manager - acknowledged the cooperation and commitment of all lenders to the syndication in achleving the milestone. He said, HNB, like so many of our clients, recognises that addressing environmental challenges is not only a necessity but a compelling economic opportunity. We already have an established presence in environmentally conscious businesses and we are delighted to build on our expertise to help meet the booming demand for green finance. We're excited to be at the forefront of something so game changing.
Expressing his gratitude on behalf of the promoters of Sobadanavi Ltd, Upall Jayawardana - Chairman and M J M Nuhuman Marikkar - CEO appreciated lenders for their tireless efforts to achieve the successful nancial closure of the transaction.