Sri Lanka launches second sovereign bond sale in 2019

ECONOMYNEXT – Sri Lanka has launched a sale of 5 and 10 year sovereign bonds in international markets, a report said, making it the second so far in 2019.

Bloomberg Newswires said initial price guidance was 6.60 percent for 5 year bonds and 7.8 percent for 10 year bonds.

In March Sri Lanka sold one billion US dollar of 5-year bonds at 6.85 percent and 1.4 billion US dollars of 10-year bonds at 7.85 percent.

Citi, Deutsche Bank, HSBC, J.P. Morgan, SMBC Nikko, StanChart and BOC International are managing the sale.

Officials said in May that Sri Lanka was planning to sell around 2.5 billion US dollars in bonds to finance cashflows in the 2019 budget.

A third bond sale of 2.0 billion US dollars may be sold later, for debt management.

The cabinet gave the nod to raise up to 480 billion rupees for debt management, under a so-called liability management law.