Sri Lanka sells US$2.4bn in sovereign bonds
ECONOMYNEXT- Sri Lanka has sold 2.5 billion US dollars of 5 and 10 year sovereign bonds, at rates of 6.85 percent and 7.85 percent, after getting US$7.5bn in subscriptions, a media report said.
Bloomberg Newswires said 1 billion US dollars of 5-year bonds were sold at 6.85 percent and 1.4 billion US dollars of 10-year bonds were sold at 7.85 percent.
The bond sale was launched with price guidance of around 7.2 to 8.2 percent. The 5-year bond had drawn subscriptions of 2.7 billion US dollars from 190 investors and the 10-year 4.8 billion from 252 investors, Bloomberg said.
In April 2018, Sri Lanka sold 1.25 billion US dollars of 5-year sovereign bonds at 5.75 percent and 1.25 billion US dollars of 10-year sovereign bonds at 6.75 percent.
Since then, external conditions had been tighter and Sri Lanka’s credit has been downgraded from ‘B+’ to ‘B’.
Sri Lanka was using a window where several issuers have come in with the US Fed expected to hold rate hikes for a while. (Colombo/Mar08/2019-SB)