Sri Lanka’s Central Bank seeks government approval to sell yen denominated bond in Japan
Governor of the Central Bank of Sri Lanka, Indrajit Coomaraswamy has reportedly said that approval has been sought from the Cabinet of Ministers to appoint managers to sell a yen denominated bond in Japan.
The Governor has noted that that the sale may be launched around October.
He has told the media that the relevant Cabinet Paper is due to be considered by the by the Cabinet of Ministers this week.
“We were told that it would a good time to the Japanese markets is October because their first half financial year finishes in September,” Coomaraswamy has been quoted as saying.
Accordingly, Sri Lanka will seek about US$ 500 million equivalent from Samurai bond.
The Japan Bank for International Co-operation (JBIC) has offered a 95 percent credit guarantee.
Coomaraswamy has added that Sri Lanka has met about a dozen Japanese institutions were supportive of the bond with a JBIC guarantee.
OSL take:
Sri Lanka’s economic policies along with the continuously improving ease of doing business environment have helped promote the country as an ideal business/investment destination in the South Asian region. Therefore, the proposed issuance of a yen denominated bond in Japan would offer an ideal investment opportunity for the discerning investor.
| Article Code : | VBS/AT/28082019/Z_6 |