Sri Lanka may take more than US$1,000mn from syndicated loan: CB Governor
Apr 27, 2018 09:02 AM GMT+0530 | 0 Comment(s)
ECONOMYNEXT - Sri Lanka may borrow more than one billion US dollars from a syndicated loan after a better than expected response from investment banks, Central Bank Governor Indrajit Coomaraswamy said.
He said bids from investment managers for the loan had just closed.
"The response has been so good, that the government is thinking of upscaling it," Coomaraswamy said.
Sri Lanka had called banks and investment house to send proposals to raise one billion US dollars for three years or more.
The loans could be in US dollars, yen or Euro. But Yen or Euro loans should have a swap to fix the total interest rate and exchange rate risk.
Sri Lanka is de facto pegged to the US dollar.
The finance ministry expected to announce mandated arrangers shortly. (Colombo/Apr16/2018)