Sri Lanka’s Hatton National Bank syndicates Rs. 9 billion loan for local company engaged in waste-to-energy projects
The Hatton National Bank (HNB) of Sri Lanka has reportedly stated that the bank had syndicated Rs. 9.0 billion loan for Western Power Company, which is a unit of publicly trade Aitken Spence Plc.
The Western Power Company is engaged in waste-to-energy projects.
According to the local media, Bank of Ceylon, DFCC and People’s Bank were co-lenders.
“The recovery of energy from waste has become crucially important with Waste to Energy (WtE) power generation, one of the world’s most effective and green modes of managing disposal of garbage,” Deputy General Manager, Corporate Banking of HNB, Ruwan Manatunga has been quoted as saying in the media.
“Our business too is evolving in response to this global trend.”
Western Energy Company will have a capacity to burn 700 metric tonnes of waste from the Colombo municipal area, powering a 10 MegaWatt power plant in 2020.
The plant is to be set up in Kerawalapitiya, Muthurajawela in Sri Lanka’s Western Province.
OSL take:
The loan syndicated by HNB for a company engaged in waste-to-energy projects indicates the increase in power generation options that Sri Lanka’s private sector is venturing into as well as the ability of local banks to accommodate financing solutions for such endeavors. Therefore, foreign businesses looking at investing in Sri Lanka could look at project opportunities in the country’s power and energy sector as well as consider the option of raising funds through the local banking system.
| Article Code : | VBS/AT/20180608/Z_4 |