Sri Lanka state port agency to sell $500mn bond

Dec 01, 2011 (LBO) – State-run Sri Lanka Ports Authority will sell a 500 million dollar bond to settle loans from Japan which are causing losses due to the appreciation of the yen, an official said. He said SLPA had taken yen loans to the value of 46 billion rupees from mid 1980s, repaid a 55 billion rupee equivalent and still had unpaid liabilities of repay about 53 billion rupees. SLPA chairman Priyath Bandu Wickrema said state-run Bank of Ceylon will lead manage the bond which is expected to be launched in January.

The bond sale is now going through internal approvals and the tenor of the loan will be decided in consultation with the central bank, he said.

In 2011 the SLPA is expected to have revenues of 32 billion rupees up from 28.2 billion rupees a year earlier, Wickrema said.

In 2010 the SLPA posted a loss in 2010 despite having a 4.3 billion rupee operational profit before interest, because of a 4.4 billion rupee equivalent loss on yen loans taken earlier.