May 08, 2018

LTL marks its entry to Nepal with landmark financial closure

Sri Lanka’s leading engineering conglomerate LTL Holdings Group, upon securing approvals to develop a 10 MW hydro power project in Nepal, signed syndicate loan agreements securing finance for the project in a landmark transaction, a press release issued by the LTL said.

Sanima Bank, one of the leading banks In (Nepal, arranged a Syndicate Debt package of circa 15 Mn. USD in local currency to finance the project on an optimal leverage of debt to equity mix. Century Bank and National Credit & Commerce Bank are the other syndicate partners. This transaction being structured on project financing basis, is an Indication of the shear confidence the international banking community is having on a renowned and well established global power sector player such as LTL. LTL was assisted in the transaction by Accede Capital of Sri Lanka. LVL Energy Fund PLC will invest in the project along with LTL.

LTL’s latest hydro project is located in western Nepal in Darchula district. It will be a run of the river high head power plant in the Makari River. River is fed throughout the year by the surrounding snowcapped mountains of Nepal securing high plant factor for the power plant. According to Mr. Sameera Ganegoda, Vice President (Renewable Energy) of LTL, the project is estimated to be completed by end of 2019.

Securing all important finance, facilitates the entry of any Sri Lankan company to the energy market in Nepal, whilst the project being financed on project financing basis would be a catalyst for other regional players to explore the vastly untapped hydro potential in Nepal. LTL intends constructing a state of the art model plant with the finest machinery from renowned European suppliers carefully blended with vast technical know-how of LTL in hydro power space that has been garnered over the years.

LTL is the leading power sector company in Sri Lanka with more than Rs. 25 billion revenue. Having earned experience in Sri Lanka, LTL has recently been aggressive in expansion globally, LTL is one of the largest industrial equipment exporters in Sri Lanka through its transformer export business to Africa, Mid East and Asia. LTL also has a strong presence in Thermal Power space In Bangladesh with more than 200MW of its own projects. It is currently building four projects to a total capacity of 50OMW for Bangladeshi Customers.

CEO of Sanima Bank, Bhuwan Kumar Mahal said, "Sanima Bank is overwhelmingly happy to be the partner of a regional player such as LTL, that has demonstrated a strong track record, not only in Sri Lanka but across the continents such as Africa in addition to Asia"