Sri Lanka begins road show to market $1bn bond

Minister appoints Dr Swaminathan to IPACSL as Chairperson

Sept 14, 2010 (LBO) – Sri Lanka has kicked off a road show to sell a billion dollar sovereign bond later this month, a media report said. Officials and investment banks promoting the issue will meet fund managers till September 24, a Bloomberg newswires report said.

Investor meetings will be held in Singapore, Hong Kong, London and the United States, the report said.

The government has hired Bank of America Corp., HSBC Holdings and Royal Bank of Scotland to help it arrange meetings with credit investors starting September 15, it quoted a person familiar with the matter as saying.

The road show comes just as Sri Lanka’s long-term foreign currency sovereign credit rating was raised by Standard & Poor’s to ‘B+’ from ‘B’ with a stable outlook.

The rating agency has said the upgrade takes into account the strengthening of Sri Lanka’s balance-of-payments position and plans to cut the fiscal deficit.

However, the rating agency warned that there were ongoing risks posed by excessive public and external borrowings and the risk of a rebound in inflation.