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Partial Credit Guarantee
Credit Enhancement Facility for Private Enterprises (Sri Lanka)
| Type |
Floating Rate Note (FRN) supported by ADB Partial Credit Guarantee (PCG) |
| Borrower |
DFCC Bank |
| Cofinanced Amount |
$65 million |
| Tenor |
10 years |
| Guarantee coverage |
The PCG covers repayment of principal at final maturity. The Government of Sri Lanka guaranteed interest. |
| Syndicate |
9 financial institutions |
| Project Cost |
$70 million (including $5 million ADB direct loan) |
| Use of Proceeds |
Onlent to commercial clients by DFCC Bank |
| Remarks |
This issue set a milestone as the longest financing tenor achieved by Sri Lanka in the capital markets. Investors received added comfort through a cross-default clause (between the FRN and ADB's direct loan), a sinking fund, and ADB's monitoring of DFCC Bank's performance. |
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