Sri Lanka plans to issue up to USD3 bln in international sovereign bonds

Mar 30, 2016 (LBO) – Sri Lanka plans to issue international sovereign bonds up to three billion dollars in 2016, the Central Bank said, in a request for proposals to appoint lead managers or book runners.

“As per the approved Sovereign Bond programme of the Government of Sri Lanka (GOSL), Central Bank of Sri Lanka (CBSL) intends to issue International Sovereign Bonds (ISBs) up to USD 3,000 million in the international capital market in 2016,” a statement said.

“The issuances in single or multiple tranches would be in US Dollar and Chinese Renminbi (Panda / Dim Sum) with a fixed coupon and medium to long term maturities where non-resident investors will be eligible to invest at the primary issuance,” it said.

Banks and investment houses that have acted as Lead Managers/Book Runners for emerging market bond issuances in aggregate amounting to a minimum of 20,000 million dollars in 2015 are eligible to submit proposals.

In February an official said Sri Lanka may go to international markets to raise up to 1.5 billion dollars this year after gauging the outcome of meetings with the International Monetary Fund.

Sri Lanka will hold discussions with the IMF in March and April on a support facility for its balance of payments, and for an endorsement of the government’s plan for fiscal consolidation.

Sri Lanka raised 1.5 billion dollars in a 10-year sovereign bond issue in October with a coupon of 6.85 percent for budgetary financing and to increase foreign reserves.This was Sri Lanka’s ninth US Dollar benchmark as well as the largest offering in the international bond market since 2007.

After ending a war with Tamil Tiger separatists in 2009, the island has increasingly gone to international markets for its borrowing program.