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Thursday May 6th, 2021
Bonds & Forex

Sri Lanka sovereign bond price guidance narrowed to 6.125-6.250-pct

COLOMBO (EconomyNext) – Sri Lanka has narrowed the price guidance of its 10-year sovereign bond to 6.125-6.250 percent as it draws towards closure, a media report said.

The bond opened at a pricing of 6.375 percent, Bloomberg Newswires said.

Fitch Ratings gave the bond a ‘BB-(EXP)’ expected rating.

A sovereign bond is usually sold to raise at least 500 million US dollars, though Sri Lanka was planning to sell 1.5 billion US dollars of bonds in January.

The sale is managed by Citi, HSBC, Standard Chartered and Deutsche Bank.

Sri Lanka last sold a sovereign bond at 5.875 percent on July 25, 2012 when the US Treasuries yield was 1.43 percent giving in a spread of 444.5 basis points above the US rate.

Ten year US Treasuries are now around 2.13 percent, indicating a narrower spread of around 412 basis points at the upper end of the pricing corridor.

 

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