Jan 07, 2014 (LBO) – US based investors have bought 62 percent of a billion US dollar sovereign bond sold by Sri Lanka, a media report said. About 89 percent were bought by fund managers, 8 percent banks and 2 percent private banks.
Sources close to the deal said 3.2 billion worth of bids had come in.
The bond yield of 6.0 percent was below the 6.25 percent price guidance set and is much below the 8.875 percent paid by state-run National Savings Bank last year.
Rating agencies had made some favourable comments regarding an improved budget for 2014, which not only raised taxes, but also cut some subsidies which politicians use to curry favour among special interest groups.
Bloomberg newswires citing an un-named source European investors took up 26 percent and Asians 12 percent, of the bond, which paid 6.0 percent.