- Cabinet paper on bond issue to be taken up tomorrow
- Samurai bond issue to be followed by Panda bond next year
The Central Bank is to seek clearance of the Cabinet of Ministers tomorrow to appoint lead managers to launch the US $500 million worth yen-denominated Samurai bond in Japan in October, which would be followed by renminbi-denominated Panda bond issuance in China next year.
Central Bank Governor Dr. Indrajit Coomaraswamy revealed a Cabinet paper would be taken up tomorrow to seek clearance to set-up a steering committee and to pursue other administrative measures to appoint lead managers through a Request for Proposal (RFP).
“We were informed that October would be a good time for the Japanese market because their first half financial year finishes in September. The process may take 2-3 months,” he said.
He also revealed that Japan Bank for International Co-operation (JBIC) has offered a 95 percent credit guarantee for the bond issue.
Further, he said that several dozens of Japanese institutions have expressed support for the proposed bond issue with JBIC guarantee.
Following the Smaurai bond issuance, the Governor said the Central Bank would work on a Panda bond issue as the Central Bank is determined to further diversify Sri Lanka’s investor base. However, he noted that the Panda bond is likely to take place after the election cycle ends.
The Central Bank targets to end this year with US$ 8.2 billion in gross foreign reserves.