The funds will mainly be utilised to help businesses that need support for revival in their operations, namely in the SME sector associated with exports, fisheries, logistics, transportation, agriculture, manufacturing etc.
BOC will receive the USD 70 million second tranche of the loan facility of USD 140 million by June this year in a landmark deal with the China Development Bank (CDB), Bank Chairman Kanchana Ratwatte said.
The first tranche of USD 70 million was released on July 19 last year under this deal entered with CDB on the strength of BOC and it will be a milestone for a more comprehensive and enhanced cooperation between the two banks.
He noted that as the largest commercial bank in Sri Lanka, BOC considers itself as the bankers to the nation with the strongest balance sheet and the No. 1 banking brand value to raise much needed foreign currency funds from foreign banks and lending agencies.
He said the CDB loan “will be utilised for supplementing Bank of Ceylon’s general lending requirements, which will provide much needed support for businesses affected by COVID-19”.
“The funds will mainly be utilised to help businesses that need support for revival in their operations, namely in the SME sector associated with exports, fisheries, logistics, transportation, agriculture, manufacturing, etc.” he added.
“We are getting this 3-year facility at a very favourable rate. We will start paying interest at the end of one-year”,Mr. Ratwatte said. .
CDB is one of the world’s largest development financial institutions and the largest Chinese bank for financing cooperation, long-term lending and bond issuance.
“BOC and CDB have established a long-term partnership ever since 2010, with this year marking the tenth anniversary of cooperation between the two banks,” he added.
Partnered with BOC, CDB has also provided the first CNY on-lending facility in Sri Lanka.
BOC is the only state institution maintaining a foreign correspondent bank network of over 800 banks that spreads across the world.
The signing of this Facility Agreement signals boosted cooperation between the two banks, further promoting association between financial institutions of Sri Lanka and China under the Belt and Road Initiative as China continues to grow its influence in Sri Lanka.