Sri Lanka’s NSB dollar bond rate ‘BB-‘ by Fitch

Aug 23, 2013 (LBO) – Sri Lanka’s state-run National Savings Bank’s planned dollar denominated bond has been given an expected rating of ‘BB-‘ by Fitch Ratings. “Fitch believes that the issue of the notes by NSB is closely linked with government policy requirements,” the rating agency said.

The proceeds are likely to be used to invest in Sri Lanka’s government dollar bond and to fund US dollar and rupee loans to state entities and projects, the agency said.

National Savings Bank has mandated Barclays, Citigroup, HSBC for meetings in Asia Europe and the US over the next week, international financial sources said.

Global bond markets are just ‘opening’ after August holiday season among investment bankers and market jitters on Fed policy, international market sources said.

NSB will be among the first large non-investment grade issuers to go to market after the market open, they said.

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