The government has raised a raised a syndicated loan of USD 150 million to fund infrastructure projects that have been earmarked and approved by the government in the 2008 Budget.

The loan was obtained through a ‘Club arrangement’ under which funds are provided by a consortium of major international banks, functioning as exclusive club members, Central Bank said.

The loan has a three-year maturity with a yearly put option and cost of US$ 6 month LIBOR plus a margin of 250 basis points per annum.

This loan also contains a Greenshoe Option through which the government could be asked to upsize the transaction by a further US$ 100 million, up to US$ 250 million, depending on the investor appetite. Some international banks have already expressed their interest to join the present group of lending banks in upsizing transaction.