July 17, 2012 (LBO) – Sri Lanka has launched a 10-year sovereign bond with order books opening in Asia on an initial price guidance of 6.125 percent, sources familiar with the issue said. Since its maiden 500 million US dollar 5-year bond in 2007, Sri Lanka has gone to the market four times, with the last two issues being 10-year billion dollar tranches.
Last year Sri Lanka launched a bond with a slightly higher price guidance. In the secondary market Sri Lankan bonds have been trading at a premium to issue price in recent months.
Sri Lanka is aiming to raise a billion US dollars from the bond, a part of which will be used to repay a maturing 500 million US dollar bond in October, officials said earlier.
Bank of America Merryll Lynch, Citi, Barclay and HSBC are lead managing the bond sale. State-run People’s Bank is a co-lead manager.
Sri Lanka has had several investor meetings concluding in London Monday.
Sri Lanka has a B1 positive rating from Moody’s, a B+ stable from Standard & Poor’s and a BB- stable from Fitch.
Sri Lanka is going to the markets amid uncertainty in European bond markets.