Bond Raiser

The Board of Investment will tap into the local bond market, to raise up to Rs.2 bn to fund a new Economic Trade Zone, north of Biyagama.

The second Economic Trade Zone called Biyagama II is to be rolled out in Wednesdays budget, and housed on a 300-acre stretch of land. rn

rnldblquote We will issue bonds to fund it to a total of Rs.2 bn but we will do it in stages with a first issue of Rs.800 mn and then again for more after that
dblquote , Director General Board of Investment, Arjunna Mahendran said.rn

rnConsultants KPMG Ford Rhodes and PricewaterhouseCoopers have been picked to structure the issue, Mahendran told Lanka Business Online.rn

rnThe BOI will leverage on Rs. 1 bn available in cash and assets to raise the funding.rn

rnldblquote There are two options available to fund work in the zones. We can spin off the zones as private companies, with their own balance sheets and they become self funding. But the problem with this is that investors worry whether they will lose the comfort they