HNB-Lakdhanavi partner to finance SL’s first-ever LNG-based combined cycle power plant

From left: HNB Deputy General Manager Legal/Company Secretary Thushari Ranaweera, Lakdhanavi Ltd Deputy Chief Executive Officer Ravindra Pitigalage, Commercial Bank Assistant General Manager Corporate and Trade B.A.H.S. Preena, Lakdhanavi Ltd Chief Executive Officer M.J.M. Nuhuman Marikkar, Lakdhanavi Ltd Chairman Upali Jayawardana, HNB Deputy General Manager Wholesale Banking Group Damith Pallewatte, Sobadhanavi Ltd Director Sanath Bandaranayake, Sampath Bank Senior Deputy General Manager FCBU/Corporate Finance Manoj Akmeemana, Sobadhanavi Ltd Director N.Y. Casie Chetty, NDB Vice President Project Finance and Corporate Credit Control Ishani Palliyaguru and People’s Bank Deputy General Manager Corporate Banking Kumari Senaratne

Hatton National Bank PLC (HNB) embraced a 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 megawatt (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 MW facility in two phases, where the 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 its commissioning as planned is critical to meet the expected demand rise in electricity.

The syndicated facility was arranged by HNB with Commercial Bank, NDB, Sampath Bank and People’s Bank joining in as the co-lenders. HNB Deputy General Manager Wholesale Banking Group Damith Pallewatte signed off on behalf of the lead financier, together with Commercial Bank Assistant General Manager Corporate and Trade B.A.H.S. Preena, NDB Vice President Project Finance and Corporate Credit Control Ishani Palliyaguru, Sampath Bank Senior Deputy General Manager FCBU/Corporate Finance Manoj Akmeemana and Peoples Bank Deputy General Manager Corporate Banking Kumari Senaratne, which took place at the Conference Centre of HNB Towers on November 1, 2021.

“We are proud to play the lead role in financing a project of national importance,” expressed Pallewatte. 
He went on to state, “This being an 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.”
HNB Assistant General Manager Corporate Banking 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, 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 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, Chairman Upali Jayawardana and Chief Executive Officer M.J.M. Nuhuman Marikkar appreciated all the lenders for their tireless efforts to achieve the successful financial closure of this transaction.