Sri Lanka’s Central Bank states US investors brought 60 percent of US$ 2 billion sovereign bonds issued
The Central Bank of Sri Lanka (CBSL) has stated that the US$ 2.0 billion international sovereign bond has received US$ 6.2 billion in orders, with fund managers from the US buying 60 percent of the issued.
Sri Lanka has sold US$ 500 million in 5-year bonds and US$ 1.5 billion in 10-year bonds on June 24, in the second such issuance this year.
The CBSL, which issued bonds for the Treasury, has reportedly stated that the 5-year bonds received US$ 1.8 billion of orders while the 10-year bonds received US$ 4.4 billion.
The Bank has said that 30 percent of the orders for the 5-year bonds came from the US, 50 percent from Europe, Middle East and Africa (EMEA) and 20 percent from Asia.
Investors in the 5-year bond were 80 percent fund managers, 9 percent insurance, pension funds and corporates, 8 percent bank treasuries and 2 percent to private banks and other investors, CBSL has noted.
For the 10-year bond, 44 percent of the subscriptions had come from the US, 40 percent from Middle East and 16 percent from Asia.
For the 10 -year bond 87 percent of investors bond were fund managers, 6 percent insurance, pension funds and corporates, 5 percent bank treasuries and 2 percent private banks and other investors.
According to CBSL, the 5-year bond was sold at 6.35 percent, down from an initial guidance of 6.60 percent and a final price guidance of 6.40 percent.
The 10-year bond was sold at 7.55 percent, down from an initial price guidance of 7.80 percent and a final price guidance of 7.60 percent.
OSL take:
The announcement by the Central Bank of Sri Lanka of the orders received up to US$ 6 billion for a US$ 2 billion sovereign bond issue and the purchase of the majority bonds issued by US investors is a clear indication of the level of confidence foreign investors has on Sri Lanka and its economy. It is undoubtedly a confidence boost for other foreign investors to also explore investment opportunities in Sri Lanka. Sri Lanka’s economic policies have been hailed by the international community including the foreign lending agencies expressing confidence in the sustainable growth of the country’s economy as well.
| Article Code : | VBS/AT/26062019/Z_7 |