Sri Lanka raises US$500mn for 7.4-pct

Oct 16, 2009 (LBO) – Sri Lanka has raised 500 million US dollars through a 5-year sovereign bond at a coupon interest rate of 7.4 percent, lower than an offering made two years ago, a media report said. There has been strong interest for the Sri Lanka bond running into billions of dollars, an international fund manager said.

The issue was managed by JP Morgan, HSBC and Royal Bank of Scotland.

Sri Lanka emerged from a 30-year civil war in May and prospects for the country has brightened.

International markets are also very liquid, interest rates are low and risk appetite is rising, making for favourable market conditions, fund managers said.

Updated

At a coupon of 7.4 percent the bonds are priced to yield 505.9 percent above similar maturity US treasuries, Bloomberg newswires said.

The bond matures in January 2015

In October 2007, Sri Lanka issued a 5-year bond for 8.25 percent maturing in 2012.