Sri Lanka’s Central Bank Governor says Sri Lanka to go ahead with international sovereign bond
Governor of the Central Bank of Sri Lanka has reportedly said the government will go ahead with an international sovereign bond in 2018.
“We want to go early as possible,” Central Bank Governor Indrajit Coomaraswamy has been quoted as saying in the media.
“Clearly markets have become much more volatile.”
The yield on Sri Lanka’s 6.2 percent 2027 US dollar sovereign bond which was trading around 5.4 percent, soared to about 6.1 percent amid international market volatility this month and was starting to settle lower, according Bloomberg data.
According to reports, following the defeat of the ruling coalition in local government election the yields against have risen above 6.2 percent.
Sri Lanka plans to sell up to US$ 2.0 billion of dollar sovereign bonds in 2018, and go for a Samurai or Panda bond later if a liability management law is passed in parliament allowing extra debt to be raised.
OSL take:
The statement by the Central Bank Governor that the government would go ahead with an international sovereign bond this year is an opportunity for foreign investors to invest in Sri Lanka.
| Article Code : | VBS/AT/20180221/Z_2 |