Done Deal

Oct 25, 2013 (LBO) - Sri Lanka's DFCC Bank has raised 100 million US dollars from an international bond at yield around 9.6 percent, market sources said. The DFCC deal went to the market with a price guidance of 9.625 percent, and faced tough conditions, taking more than two days to close.

According to earlier reports DFCC was hoping to raise 250 million US dollars for 5-years.

Most of the money was expected to be loaned to the state and some used to roll-over maturing debt.

The bonds were rated 'B' by S&P and 'B+' by Fitch.

Fitch has warned about excessive foreign borrowings by the state. There had also been concerns about private banks being encouraged to borrow abroad.

DFCC is expected to get a 75 percent forex risk cover from Sri Lanka's central bank for the bond, prospective investors in the bond was told.

State-run National Savings recently went raised 750 million US dollars at 8.875 percent for 5-years setting a benchmark for quasi-sovereign debt.

Conditions in global bond markets have tightened in recent months with several years of euphoria over speculative emerging market debt, fired by loose Federal Reserve

Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments
Top
0
Would love your thoughts, please comment.x
()
x