Sri Lanka $2.5bn bond sale confirms investor confidence in growth story: HSBC
ECONOMYNEXT – Sri Lanka’s 2.5 billion US dollar bond sale has confirmed its position as a top issuer in the capital market with investors placing confidence in the country’s growth story, says HSBC, a joint lead manager to the deal.
"This transaction signals the continued confidence placed by the international investor community in the country’s strong credit and growth story," said Mark Prothero, CEO HSBC Sri Lanka and Maldives.
“The sovereign announced a dual tranche offering on the 11th of April 2018, and once again displayed its savviness to remain nimble and responsive to market conditions and successfully capturing a stable market window."
Sri Lanka sold 1.25 billion dollars of 5-year bonds at 5.75 percent and 1.25 billion US dollars of 10-year bonds at 6.75 percent, the largest ever in a single offering.
"The strong interest shown from a wide range of high quality investors across the US, Europe and Asia, allowed the Sovereign to tighten price guidance by 25bps each across both tranches, confirming its position as a premier issuer in the capital market," HSBC said in a statement.
HSBC was joint lead manager, bookrunner and ratings adviser to the government of Sri Lanka for the bond issue, the 12th issuance since 2007 and the largest. (COLOMBO, 17 April, 2018)