Wed, 14 Apr 2021 Today's Paper

Sri Lanka waiting for right time to raise up to US $1.5bn bond

4 March 2015 03:47 am - 0     - {{hitsCtrl.values.hits}}

A A A

REUTERS: Sri Lanka is waiting for the right time to launch a sovereign bond of up to US $1.5 billion, possibly with a longer tenure to roll over its debts in 2015, Central Bank Governor Arjuna Mahendran said.



The island nation’s last sovereign bond of US $500 million was priced at a yield of 5.125 percent in April 2014.“Now that inflation is coming down, I see no reason why we won’t get a better rate of interest,” Mahendran told Reuters.Sri Lanka’s inflation hit a record low of 0.6 percent in January, slowing from 3.2 percent the previous month after the new government reduced fuel prices.Speculation over an interest rate hike by the U.S. Federal Reserve and Greece possibly exiting the euro zone have been weighing on emerging markets’ bond pricing at the moment, Mahendran said.

“So we want to wait for an opportune moment. When that volatility decreases then we will be able to get the best possible rate for our borrowing,” he said.
“I will definitely go for a longer tenure, may be even a 20-year or 30-year is something to look for. We don’t want to increase the interest rate burden of the country.”

The bond will be used to roll over some expensive debts that have to be repaid this year, he said.Mahendran said the lead managers for the bond issue have been picked, but declined to name them.The Central Bank repaid a US $500 million sovereign bond from its reserves soon after the January 8 presidential polls as the US $ 76 billion economy was unable t o raise money through sovereign bonds due to the election.
See Kapruka's top selling online shopping categories such as Toys, Grocery, Flowers, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,News, Courier/Delivery, Food Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka.

 

  Comments - 0

See Kapruka's top selling online shopping categories such as Toys, Grocery, Flowers, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,News, Courier/Delivery, Food Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka.

 

 

Add comment

Comments will be edited (grammar, spelling and slang) and authorized at the discretion of Daily Mirror online. The website also has the right not to publish selected comments.

Reply To:

Name - Reply Comment




Justice Delayed is Justice Denied!

Two years after the Easter Sunday carnage people are left with false hopes an

Cinematic links between director Lester and actor Gamini

Sinhala cinema’s pioneering director Lester James Peries is the Sri Lankan

Difficult to forgive Easter Sunday bombers: Brother of tourists killed in Sri Lanka

This year marks two years since the deadly Easter Sunday attacks in Sri Lanka

All about the new variants of Covid-19

With the Sri Lankan government successfully completing the first phase of the

See Kapruka's top selling online shopping categories such as Toys, Grocery, Flowers, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,News, Courier/Delivery, Food Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka.