Sri Lanka to roll-over US500mn bond, extend maturity: Treasury secy

CEAT Kelani Holdings Managing Director Ravi Dadlani (right) and Lanka Ashok Leyland CEO Umesh Gautham exchange the OEM agreement

Apr 30, 2012 (LBO) – Sri Lanka will roll-over a maturing 500 million US dollar bond which is maturing in October 2012 and extend its tenor to 10-years, Treasury secretary P B Jayasundera said. In 2007, Sri Lanka sold its maiden 500 million dollar sovereign bond.

Jayasundera said whether another 500 million US dollars would be raised to make the total issue billion dollars would be decided based on market conditions at the time.

He said one view was the a billion dollar bond would be able to access larger investment funds.

However as a matter of economic prudence Jayasundera said he would prefer to raise extra money only if high cost borrowings could be settled, so that any borrowings would be ‘debt neutral’. .

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