Sri Lanka to appoint joint mangers for sovereign bond

July 26, 2007 (LBO) – Sri Lanka would choose more than one lead manager to the upcoming sovereign bond issue, with evaluations of bids to begin soon after a beauty parade ends this Friday, Central Bank Governor Nivard Cabraal said. “We want to increase Sri Lanka’s reach to a broader spread of investors,” Cabraal told LBO.

“We have not decided whether it is two or three lead mangers, but the banks will complete their presentations by Friday and we will evaluate the bids after that.”

He said the government is also keeping the decision on whether to raise 400 million dollars or 500 million dollars through a 4 or 5-year sovereign bond open at this time.

Top global investment banks, including Merrill Lynch, J P Morgan, Citi, UBS Warburg HSBC, Deutsche Bank, Standard Chartered and Barclays are vying for the deal with some banks tying up with local partners.

Bank of Ceylon has tied up with HSBC while Commercial Bank is working with UBS Warburg and Deutsche.

The technical evaluation of bids is expected to be started over the weekend. If evaluation is completed quickly recommendations could be submitted to an upcoming monetary board meeting next week, Cabraal said.

Sri Lanka’s central bank runs the public deb