Sri Lanka DFCC bond decision later today

Oct 23, 2013 (LBO) – A decision on a dollar denominated bond offered by Sri Lanka’s DFCC Bank is likely to be made later today, market sources said. State-run NSB, which has almost sovereign risk had to pay 8.8 percent on a bond, sharply higher than the rate of a little over 6 percent paid for Sri Lankan sovereign bonds last year.

DFCC Bank went to the market yesterday with a price guidance of about 9.6 percent.

The bank is looking to raise at least 250 million US dollars.

A decision on the bond will be made after the London market opens later today, sources said.

Yields and risk perceptions on emerging market bonds have risen over the past six months ending several years of euphoria fired by loose US monetary policy, which also fired a gold bubble. The gold bubble has also since deflated.