Lankapage Logo Recent Top Stories
CP 14 YEARS
Go Home Home Serving the Sri Lankan community globally since 2000
go to LankaPage.com

Leading News from Sri Lanka::

* Sri Lanka's US$ 1 billion international sovereign bond oversubscribed 3.2 times
Tue, Jan 7, 2014, 10:59 pm SL Time, ColomboPage News Desk, Sri Lanka.

Jan 07, Colombo: Sri Lanka's 5-year US$ 1 billion international sovereign bond issued Monday to the international market was oversubscribed 3.2 times within 18 hours, the Central Bank of Sri Lanka (CBSL) said today.

Accordingly, the first international bond issue in Asia with a 6.00 percent rate received US$ 3.2 billion from 200 accounts with the US investors taking 62 percent, European investors 26 percent and Asian 12 percent.

Global fund managers were the largest investors in the transaction, representing 89 per cent, with banks and private banks taking 8 percent and 3 percent respectively, the CBSL said.

The Issue represents the sixth US Dollar benchmark offering in the international bond markets by Sri Lanka since 2007.

Fitch Ratings, Moody's Investors Service and Standard and Poor's have rated the Issue at 'BB-', 'B1' and 'B+' respectively.

The Issue was announced during the Asia morning on January 6, 2014 with an initial price guidance of 6.25 percent per year but with investors rushing to buy Sri Lanka was able to price the Issue at a yield of 6.00 percent in spite of the rising benchmark US Treasury yield.

"This tighter yield reflects the continued confidence that the international investors have placed in the sovereign bond issuance of Sri Lanka," the Central Bank said.

According to Central Bank, driven by the support from m existing and new investors, Sri Lanka succeeded in achieving a five-year cost of funds which is progressively lower compared to the previous Issuances.

Sri Lanka's previous five-year Issuances in 2007 and 2009 were priced at yields of 8.25 per cent and 7.40 per cent respectively.

"This achievement is all the more impressive, given the rising bench mark US Treasury yield and also the high volatility seen in global capital markets in recent months," the Bank said.

Citigroup, The Hongkong and Shanghai Banking Corporation Limited, Standard Chartered Bank and UBS acted as Joint Lead Managers/Bookrunners on the transaction.

ColomboPage - Recent 10 Stories
Ceylon Oxygen Limited receives latest ISO 9001:2015 certification
-- [53 minutes ago]
Pakistan sends 10,000 MT of rice for drought affected people of Sri Lanka
-- [1 hour and 16 minutes ago]
India could collaborate in the development of three other ports in Sri Lanka - Ports Minister
-- [1 hour and 37 minutes ago]
Sri Lanka inks USD 17 million loan agreement with Kuwait for Kalu Ganga project
-- [2 hours ago]
Army personnel charged of assault on Journalist Keith Noyahr granted bail
-- [2 hours ago]
Sri Lanka grants dual citizenship to another 1750 expatriates
-- [3 hours ago]
No accession of Muslim abodes near Wilpattu Forest Reserves, government assures
-- [3 hours ago]
Ceylon Chamber seminar to discuss Implementation of WTO Trade Facilitation Agreement in Sri Lanka
-- [9 hours ago]
MP Wimal Weerawansa gives up hunger strike
-- [9 hours ago]
Sri Lanka's computer literacy rate highest in urban sector, lowest in Estates- report

Copyright © 2000, 2014 by LankaPage.com (LLC) :
The news and other contents on ColomboPage are copyrighted property of LankaPage.com, LLC. Any unauthorized use of any information on ColomboPage may constitute a violation of copyright laws. You need written permission to reproduce, republish, post, transmit, broadcast or distribute, material from this site from LankaPage.com, LLC. However, news organizations or broadcasters in Sri Lanka may republish the news items in ColomboPage with proper acknowledgment to ColomboPage.