Sunday, 9th May 2021

Sovereign bond issues worth Sri Lanka USD 2 bn oversubscribed 3 times

Colombo, June 25 (BAN/ AD): Two sovereign bond issues of USD 2 billion were issued yesterday and have got good response by oversubscribing more than 3 times. Central bank has said this clearly shows global investor confidence in Sri Lanka.

The Central Bank of Sri Lanka on Monday, successfully priced a new issuance of U.S.$500 million 5-year and U.S.$1.5 billion long 10-year Senior Unsecured Fixed Rate Bonds with maturity dates of June 28th, 2024 and March 28th, 2030. The Bonds have been rated ‘B2’, ‘B’ and ‘B’ by Moody’s Investors Service, Standard and Poor’s and Fitch Ratings.

Since 2007 this is countrys 14th bond issue and second issue this year. BOC International, Citigroup, Deutsche Bank, HSBC, J.P. Morgan, SMBC Nikko and Standard Chartered Bank acted as the Joint Lead Managers and Bookrunners on the successful transaction.

The final orderbook stood at over USD 1.8 billion across 165 accounts for the 5-year tranche and over USD 4.4 billion across 290 accounts for the long 10-year tranche, reflecting total subscription of USD 6.2 billion (over three times over subscription).

As per investor type segregation

  • 87% to fund managers
  • 6% to insurance, pension funds and corporate
  • 5% to bank treasury
  • 2% to private banks and other investors.

 

 

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