ECONOMYNEXT - Price guidance on Sri Lanka's international sovereign bond launched earlier in the day has narrowed with issue managers collecting orders from buyers.
A bond sale usually starts as East Asian markets open and closes when European and US markets close.
Issue managers have lowered the price guidance on 5-year bonds to around 6.90 percent from 7.20 percent, Bloomberg Newswires reported.
For 10-year bonds, the guidance has been lowered to 7.90 percent from 8.20 percent.
BOC, Citi, DB, HSBC (B&D), JPM, SMBC Nikko, Standard Chartered are managing the sale.
Fitch and Standard and Poor's have given the bonds a rating of 'B' and Moody's 'B2' in line with Sri Lanka's sovereign rating, which was downgraded amid a political crisis triggered in October 2018.
Sri Lanka's existing 2023 sovereign bonds are quoted around 6.60 percent, according to Bloomberg Newswires data.
The yield soared to 9.8 percent levels, during a so-called 'constitutional coup' by President Maithripala Sirisena but started to fall after courts ruled his actions were illegal.
Sri Lanka launched the bond after a budget with a 4.5 percent deficit with an ambitious revenue target was presented to parliament on March 05, on the back of a staff-level agreement with the International Monetary Fund. (Colombo/Mar05/2019-SB)