Sri Lanka to issue US$1bn bond in Sept

Aug 04, 2010 (LBO) – Sri Lanka is to issue an international sovereign bond of a billion dollars around September 2010 to raise cash to fund infrastructure and retire debt, the central bank said in a statement. “The proceeds from the bond issue would be use for infrastructure development and to restructure the existing government debt portfolio by retiring high cost domestic debt and short term foreign currency denominated debt,” the statement said. It said the bank has invited leading international banks and investment houses to submit their proposals to act as lead manager and bookrunners for the bond.

The international sovereign bond issue would be within the annual borrowing limit approved by the Parliament for 2010.