HNB partners Sri Lanka’s first LNG based Combined Cycle Power Plant Project
Thushari Ranaweera Deputy General Manager Legal and Company Secretary, HNB Ravindra Pitigalage Deputy Chief Executive Officer, Lakdhanavi B.A.H.S. Preena Assistant General Manager Corporate and Trade, Commercial Bank, M.J.M. Nuhuman Marikkar Chief Executive Officer, Lakdhanavi, Upali Jayawardana Chairman, Lakdhanavi, Damith Pallewatte Deputy General Manager Wholesale Banking Group, HNB, Sanath Bandaranayake Director, Sobadhanavi, Manoj Akmeemana Senior Deputy General ManagerFCBU/ Corporate Finance, Sampath Bank, N.Y. Casie Chetty Director, Sobadhanavi, Ishani Palliyaguru Vice President Project Finance and Corporate Credit Control, NDB and Kumari Senaratne Deputy General Manager Corporate Banking Peoples Bank
Hatton National Bank PLC (HNB) announced a timely partnership with Lakdhanavi (a member of LTL Holdings Group) to serve as the Arranger to a syndicated loan facility for the development of 350 Mega Watt (MW) first 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, LNG based Combined Cycle power plant, the first of its kind in Sri Lanka.
Sobadhanavi, a subsidiary of Lakdhanavi 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 Wholesale Banking Group of HNB, Damith Pallewatte signed off on behalf of lead financier, together with B.A.H.S. Preena Assistant General Manager (Corporate and Trade) of Commercial Bank, Ishani Palliyaguru Vice President (Project Finance and Corporate Credit Control) of NDB, Manoj Akmeemana Senior Deputy General Manager (FCBU/Corporate Finance) of Sampath Bank and Kumari Senaratne Deputy General Manager (Corporate Banking) of Peoples Bank, which took place at Conference Centre of HNB Towers on November 1.
“We are proud to play the lead role in financing a project of national importance” expressed 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 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.”
Expressing his gratitude on behalf of the promoters of Sobadhanavi Upali Jayawardana Chairman and M.J.M. Nuhuman Marikkar Chief Executive Officer appreciated all the lenders for their tireless efforts to achieve the successful financial closure of this transaction.