HNB partners with Lakdhanavi Ltd to finance first ever LNG based Combined Cycle Power Plant ‘Sobadhanavi’

Hatton National Bank PLC (HNB) embraceda timely partnership with Lakdhanavi Ltd (a member of LTL Holdings Group) to serve as the Arranger / Lead Banker to a syndicated loan facility together with several other commercial banks for the development of 350 Mega Watt (MW) first ever Liquefied Natural Gas (LNG) based Combined Cycle power plant in Kerawalapitiya.

HNB as the Arranger of the Syndicated Loan and Lead Banking Partner together with 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 Sobadhanavi Ltd’s LNG based Combined Cycle power plant, the first of its kind in Sri Lanka.

Sobadhanavi Ltd, a subsidiary of Lakdhanavi 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 operationwill 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 – Wholesale Banking Group of HNB, Mr. DamithPallewatte signed off on behalf of lead financier, together with Mr. B A H S Preena – Assistant General Manager (Corporate & Trade) of Commercial Bank, Ms. IshaniPalliyaguru – Vice President (Project Finance & Corporate Credit Control) of NDB, Mr. Manoj Akmeemana – Senior Deputy General Manager (FCBU/Corporate Finance) of Sampath Bank and KumariSenaratne – Deputy General Manager (Corporate Banking) of Peoples Bank, which took place at Conference Centre of HNB Towers on 01st of November 2021.

“We are proud to play the lead role in financing a project of national importance” expressed Mr. Pallewatte. He went on to state, “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.”

Assistant General Manager – Corporate Banking of HNB Mr. Majella Rodrigo acknowledged the cooperation and commitment of all lenders to the syndication in achieving this crucial milestone. He noted: “HNB, like so many of our clients, recognizes 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 be able 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 Sobadhanavi Ltd, Mr. UpaliJayawardana – Chairman and Mr. M J M NuhumanMarikkar – Chief Executive Officer appreciated all the lenders for their tireless efforts to achieve the successful financial closure of this transaction.

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