Lankapage Logo CP 19 YEARS
Go Home Home Serving the Sri Lankan community globally since 2000
go to LankaPage.com

Leading News from Sri Lanka::

* Sri Lanka launches US$ 2.5 billion sovereign bond issue
Fri, Apr 13, 2018, 10:51 am SL Time, ColomboPage News Desk, Sri Lanka.

Apr 13, Colombo: The Central Bank of Sri Lanka on behalf of the Sri Lankan government has launched two US$ 1.25 billion International Sovereign Bond issue, the Central Bank said Thursday in a release.

On April 11th 2018, the Central Bank on behalf marked its return to the US dollar bond markets with a successful issuance of new US dollars 1.25 billion 5-year and US dollars 1.25 billion 10-year Senior Unsecured Fixed Rate Notes with maturity dates of April 18th 2023 and April 18th 2028 respectively.

The Notes have been rated 'B1', 'B+' and 'B+' by Moody's Investors Service, Standard and Poor's and Fitch Ratings respectively.

This marks Sri Lanka's twelfth US dollar benchmark offering in the international bond markets since 2007. This also represents the largest offshore bond offering ever by Sri Lanka and is a strong reflection of the international investor community's continued support for Sri Lanka through the years.

Citigroup, Deutsche Bank, HSBC, J.P. Morgan and Standard Chartered Bank acted as the Joint Lead Managers and Bookrunners on this successful transaction.

Identifying a supportive issuance window in a challenging market environment, Sri Lanka announced the transaction during the Asia morning of April 11th 2018. The joint syndicates released terms and initial price guidance for new 5-year and 10-year tranches at 6.00% and 7.00% areas, respectively. The transaction saw strong interest from a wide range of high quality investors, which allowed the issuer to tighten price guidance by 25 bps each across both tranches. The Notes eventually priced during New York hours, well inside the initial price guidance with a coupon of 5.75% and 6.75% for new 5-year and 10-year tranches respectively.

The final order book stood at US dollars 3.0 billion across 235+ accounts for the 5-year tranche and US dollars 3.5 billion across 190+ accounts for the 10-year tranche. This clearly reflects investors' continued confidence in Sri Lanka and its economic outlook.

The order book was well diversified across both tranches. The 5-year tranche saw allocations of 66% to the U.S., 24% to Europe, and the remaining 10% to Asia. By investor type, the split was 92% to fund managers, 5% to insurance and pension funds, 2% to banks, and 1% to private banks. The 10-year tranche saw allocations of 65% to the U.S., 29% to Europe, and the remaining 6% to Asia. By investor type, the split was similar to the 5-year tranche i.e. 92% to fund managers, 5% to insurance and pension funds, 2% to banks, and 1% to private banks.

 

ColomboPage - Recent 10 Stories ::
Pakistan offers numerous scholarship opportunities for Sri Lankan students
-- [5 hours ago]
Minister Ranjan Ramanayake says list of 24 MPs using drugs handed over to Speaker
-- [5 hours ago]
France supports Sri Lanka's fisheries sector to cut post-harvest losses
-- [6 hours ago]
Speaker to table the committee report on disorderly conduct in parliament on Friday
-- [6 hours ago]
Sri Lanka Navy, PNB arrest three people at sea with 20 kg of Kerala Cannabis
-- [8 hours ago]
Fitch downgrades SLT, CEB & DSi, upgrades Lion's Brewery on Sri Lanka National Rating Scale Revision
-- [9 hours ago]
President emphasizes uplifting underprivileged in urban areas under the Gramashakthi Movement in future
IOM conducts user training workshop for National Police Commission on new Public Complaint Management System
Education Ministry to take action against spreading false rumors regarding Suraksha Insurance
Indian national dies at Sri Lanka's international airport

Copyright © 2000, 2016 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.