Sri Lanka says strong interest in US$500mn term loan
ECONOMYNEXT – Sri Lanka has seen a strong interest from investment banks for proposals to raise 500 million US dollars through a term loan, a top official said.
There had been a very good response from prospective bidders but some had requested more time to get required board approvals, Treasury Secretary Sajith Attygalle said.
Sri Lanka only called for proposal on June 17 with a deadline of June 30, giving less than two weeks.
The deadline had now been extended to July 17.
Sri Lanka is seeking foreign currency term financing up to 500 million US dollar at a premium to the London Interbank Offered Rate.
Sri Lanka’s budget deficit is expected to expand to 8.5 percent of gross domestic product in 2020, amid tax cuts and an economic slowdown. (Colombo/July08/2020)