Breaking News

SL sells $1 Billion of bonds

18 Jul 2012 - {{hitsCtrl.values.hits}}

Sri Lanka's $1 billion, 10-year sovereign bond will yield 5.875 percent and was more than ten times oversubscribed, two sources close to the deal said on Tuesday.

The price matched the central bank's estimate of below 6 percent. A similar bond yielded 6.25 percent last year.

Sri Lanka's third Eurobond was sold as Europe grapples with a debt crisis and the United States, where Sri Lanka has the largest fixed-income investor pool for its sovereign paper, is struggling with sluggish economic growth.

"It's finalised at 5.875 percent," a source close to the deal said. "It was oversubscribed 10.5 times and the yield is substantially lower than last year."

Bank of America Merrill Lynch, Barclays Capital , Citibank NA, and HSBC were lead managers.

Sri Lanka revised the guidance on its latest Eurobond to 5.875-6 percent from 6.125 percent amid strong demand early in the day when it opened the order book in Asia.

It is the island nation's fifth sovereign bond since the it started to tap international capital markets in 2007 aiming to fund its long-neglected raft of infrastructure projects.

Proceeds from the bond will be used to pay off the country's debut 5-year $500 million Eurobond with a 8.25 percent yield and more pricey short-term debt used for infrastructure projects.

Local currency dealers said on Tuesday they expected Sri Lanka's rupee currency to touch 130 against the dollar soon due to expected inflows from the bond.

Yields have tightened since the October 2007 issue as Sri Lanka started to deal with fiscal weaknesses as agreed with the International Monetary Fund in exchange for a $2.6 billion loan approved in July 2009 (REUTERS)

Breaking News

SL sells $1 Billion of bonds

Most Popular Articles

2026 FIFA World Cup Schedule in Sri Lankan Standard Time

Breaking Down the Israel–Iran Conflict: What We Know So Far - Day 108

’’Cut out the noise, focus on your game’’; Sri Lanka great reaches out to Sooryavanshi

Struggling Pizza Hut chain to be sold for $2.7bn

Sri Lanka find right combination in WI defeat

Sri Lankan Rupee appreciates further against US Dollar

Latest News

Which teams have qualified for the FIFA World Cup 2026 knockouts, round of 32?

Fuel price relief possible by August or September if global prices remain stable: Bimal

Three-month concession given for vehicles without seatbelts

Pakistan cuts petrol price by Rs74 after US-Iran peace deal eases oil costs

Iran closes Strait of Hormuz over ceasefire violations - MEHR