leads landmark financing
deal of US$ 88 million
February 2002 the Ceylon Electricity Board (CEB) called for Request
for Proposals (RFP) from interested parties for the supply of 200 MW
of power under a medium term proposal. CEB awarded two 100 MW plants
to be built on a BOO basis to the following bidders:
Aitken Spence/Caterpillar Consortium 100MW at Embilipitiya
Hemas/Lakdhanavi Consortium 100MW at Puttalam
RFP required that a separate project company should be floated for the
project. A consortium led by Hemas Group and Lakdhanavi Limited and a
consortium led by Aitken Spence & Co. Ltd., and Caterpillar Inc.
were successful in their bids and each incorporated a separate company
called Heladhanavi Limited to undertake the project at Puttalam and
ACE Power Embilipitiya (Pvt) Limited to undertake the project in
Embilipitiya respectively. The Letter of Intent (LOI) was issued to
the two project companies by the CEB on 11 April 2003.
Ltd. was incorporated by its parent company Lanka Transformers ( a
subsidiary of CEB) to construct and operate a power plant at
Sapugaskanda. It is the first and the only fully Sri Lankan owned
Independent Power Producer (IPP) operating in the island.
Hemas Group has its roots in the pharmaceutical sector and currently
is the largest private sector importer of pharmaceuticals. The group
has diversified into the personal care, leisure and the garment
sectors. With this venture the company's latest diversification is
into the power sector.
the lead bank arrangers the Corporate Finance Division of HNB has
undertaken to raise US $ 47 million of debt for Heladhanvi Limited
from the FCBU's of the local commercial banks and foreign credit lines
available to DFIs. The syndicated term loan has been structured for a
period of seven years including a grace period of two years with an
interest rate of LIBOR + 3% p.a. The security for the facility would
be a mortgage over the project assets, assignment of rights under the
project documents and pledge of shares of the promoters. HNB has
successfully functioned as the lead bank arranger in raising US Dollar
debt financing for large scale infrastructure projects.
along with Commercial Bank of Ceylon Limited are the joint lead
banks\arrangers for the syndicated term loan for ACE Power
1999 in response to a Ceylon Electricity Board (CEB) request for
proposal Aitken Spence together with the Wartsila Group of Finland,
Commonwealth Development Corporation of U.K. and Banaras House of
India tendered a bid to supply the CEB with 2x20 MW of power. This
consortium was successful in their bid and constructed power plants in
Matara and Horana. The Matara plant was commissioned in March 2002
while the plant at Horana was commissioned in December 2002. Both
power plants are currently supplying power to the national grid. The
debt financing of both projects amounting to US $ 24 million and Rs.
357 million was arranged through a consortium of local banks with HNB
acting as the lead bank/arranger.
Inc., is the world's leading manufacturer of construction and mining
equipment, diesel and natural gas engines and industrial gas turbines.
The group is also the world's second largest manufacturer of
electrical power generation equipment and has experience in developing
power projects around the world, often as IPPs, with plant sizes
ranging from approximately 15 to 100 MW.
group makes significant direct equity contributions to the projects it
undertakes as well as being involved in project development from the
initial stages through to the construction, long-term operations and
maintenance of the project. This shows the commitment placed in each
project undertaken and also ensures that the Caterpillar Group's
reputation for quality and customer service is maintained. The
proposed 100MW power project to be located at Embilipitiya is the
group's first project as an IPP in the Sri Lankan power sector.
joint lead banks/arrangers have undertaken to raise US $ 41 million of
debt for ACE Power Embilipitiya (Pvt) Limited from the FCBU's of the
local commercial banks and foreign credit lines of DFIs. The tenor and
the security for the facility would be the same as the Heladhanavi
project companies are extremely cautious of their environmental and
social responsibilities and standards that have to be met. The power
plant equipment use the latest technology, which are designed and
built according to standards specified by the World Bank (WB) and
World Health Organisation (WHO).
of HNB indicated that they have received in principle commitments from
local commercial banks and are confident that with their experience
financial closure will be achieved within the stipulated time period
of four months by mid September 2003. The financing to the above two
projects is the largest ever lending done by the local banks on a
non-recourse basis to the power sector in Sri Lanka.
has a fully functional Corporate Finance Division that provides a
range of corporate finance and investment banking services including
issue management, underwriting and placement of equity and debt, loan
syndication, fund management, corporate restructuring and mergers and
acquisitions, and advisory services. Since the upturn of the economy
resulting from the peace process, HNB Corporate Finance has been
extremely active with new assignments in equity and debt structuring.