HSBC says Sri Lanka’s US$ 2.5 billion bond sale confirms investor confidence in country’s growth story
The Hong Kong and Shanghai Banking Corporation (HSBC), a joint lead manager in Sri Lanka’s US$ 2.5 billion bond sale, has reportedly said the sale has confirmed its position as a top issuer in the capital market with investors placing confidence in the country’s growth story.
“This transaction signals the continued confidence placed by the international investor community in the country’s strong credit and growth story,” said CEO HSBC Sri Lanka and Maldives, Mark Prothero has been quoted as saying.
“The sovereign announced a dual tranche offering on the 11th of April 2018, and once again displayed its savviness to remain nimble and responsive to market conditions and successfully capturing a stable market window.”
Sri Lanka sold US$ 1.25 billion of 5-year bonds at 5.75 percent and US$ 1.25 billion of 10-year bonds at 6.75 percent, the largest ever in a single offering.
“The strong interest shown from a wide range of high quality investors across the US, Europe and Asia, allowed the Sovereign to tighten price guidance by 25bps each across both tranches, confirming its position as a premier issuer in the capital market,” HSBC has said in a statement.
HSBC was joint lead manager, bookrunner and ratings adviser to the government of Sri Lanka for the bond issue, the 12th issuance since 2007 and the largest.
The statement by HSBC is an indication of the continued as well as the increased investor confidence in Sri Lanka’s economy. Sri Lanka’s strong credit scores as well as its development agenda would further push the island nation into a positive position where foreign investments are concerned. Therefore, the comments by Standard Chartered a few days back and now HSBC indicates that investing in Sri Lanka would yield good returns to the investors.
|Article Code :||VBS/AT/19042018/Z_5|