GuarantCo to back more rupee debt issuance in Sri Lanka

ECONOMYNEXT – GuarantCo Limited, a firm backed by Australia and European governments to support infrastructure and domestic currency financing in frontier markets, is eyeing more business in Sri Lanka, an official has said.

The firm could help Sri Lankan firms tap up to $150 million in long-term financing, Chief Investment Officer Lasitha Perera was quoted as saying at a business forum in Colombo organized by Sri Lanka-based First Capital investment banking group and several development financing agencies.

The firm was was looking at a waste-to-energy project, a cement plant and a sewage unit for a local authority in Sri Lanka.

GuarantCo guaranteed its first Rs1.4 billion (about $10 million) corporate debenture for Soflogic Finance, enhancing the credit of its corporate debt to AAA and reducing borrowing costs in a deal structured by First Capital, a statement said.

GuarantCo was looking to help private firms sell rupee debt up to 10 years, and make domestic debt more attractive to foreign buyers.

It could also help with forex swaps.

Perera said the firm could do business of up to $150 million in Sri Lanka. (Colombo/Aug05/2016)


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