Sri Lanka eying 10-year Samurai bond sale in 2019

ECONOMYNEXT – Sri Lanka is eying a 10-year Samurai bond to raise funds for debt management, after parliament gave the go ahead to raise around 480 billion rupees outside the 2019 budget requirements, the Central Bank Governor Indrajith Coomaraswamy said.

"We are going to Tokyo in a couple of weeks to explore the possibility of a Samurai bond," Governor Coomaraswamy told reporters.

"It would not be wise to borrow less than 10-years (tenure)."

He said Sri Lanka was ‘agnostic’ about the type of bond, and wanted to borrow at the lowest rate.

Governor Coomaraswamy said a credit guarantee was also available from the Japan Bank for International Corporation for the Samurai bond.

Though yen loans have low rates, Sri Lanka wants to swap the yen to dollars to guard against an appreciating Japanese currency.

Sri Lanka had already gone to dollar sovereign bond markets twice in 2019. (Colombo/July12/2019)

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