SriLankan Airlines to roll-over US$175mn bond

ECONOMYNEXT  – State-run SriLankan Airlines is to sell a 175 million US dollar bond to roll-over a similar sized issue that is maturing this month, which is fully guaranteed by the government.

Fitch Ratings said the bond has been a given provisional rating of ‘B(EXP)’ in line with the sovereign rating.

"The proposed bonds are rated at the same level as the bonds issued by SLA’s parent, the government of Sri Lanka (B/Stable), due to the unconditional and irrevocable guarantee provided by the government," the Fitch said.

Bloomberg Newswires said Credit Suisse and StanChartered will jointly manage the bond sale.

The rating on the bonds is equalized with the long-term foreign currency sovereign credit rating on Sri Lanka (B/Stable/B), and is based on the timely, unconditional, and irrevocable guarantee by the government.

The obligations of the government as guarantor under the guarantee for the bonds constitute unsecured and unsubordinated obligations of the guarantor, and shall, at all times rank at least equally with all its other present and future unsecured and unsubordinated obligations, save for the exceptions as may be provided by applicable legislation and subject to the deed of guarantee. (Colombo/June182019)