Sri Lanka raises one billion dollars at 6.25 percent

Susantha Ratnayake, Chairman, BOI formally presents the Certificate of Registration to Indra Silva, Chairman, Indra Hotels and Resorts Kandy (Pvt) Ltd

July 21, 2011 (LBO) – Sri Lanka raises has sold a 10-year sovereign bond at 6.25 percent to raise one billion dollars from international markets, a source close to the deal said. Sri Lanka recently got a rating upgrade, but it is also balanced against turmoil in international bond markets, analysts said. The deal had attracted 7.0 billion dollars in subscriptions, indicating strong demand. Orders were high

This was the fourth sovereign issue by Sri Lanka. The country has previously sold two 500 million dollar tranches and one billion dollar tranche.

The last bond was also priced at 6.25 percent. US 10-year Treasuries are now around 2.96 percent.

In late September 2010 US 10-year Treasuries were yielded around 2.54.