SriLankan Airlines bond sale shows confidence in Sri Lanka: Standard Chartered
Jun 24, 2019 06:39 AM GMT+0530 | 0 Comment(s)
ECONOMYNEXT - The sale of a 5 -year US dollar bond sale by SriLankan Airlines at 7.00 percent, which drew over a billion US dollars in orders has shown investor confidence in Sri Lanka, Standard Chartered, which was lead manager to the sale said.
The 175 million US dollar bond sale had got subscriptions of 5.7 times the issue helping bring down the initial price guidance from 7.50 percent to 7.0 percent.
"The pricing achieved for the issuance reflects the strong investor confidence in Sri Lanka and the potential for other entities to tap the international capital markets," Bingumal Thewarathanthri, Chief Executive, Standard Chartered Colombo sad.
"We are committed to the development of the country and our global footprint enables us to support our clients in their growth strategy.”
There was strong institutional investor participation from Asia and Europe making in the largest tightening achieved from initial to final price guidance on a foreign currency bond transaction from Sri Lanka, the bank said.
Sri Lanka is planning to go to international markets with sovereign bonds for over 3.0 billion US dollars both for current year expenses and debt repayment and also for future debt management.
Standard Chartered said 7.0 percent for SriLankan with a sovereign guarantee reflected a 'marginal premium over the government. (Colombo/June24/2019)