Standard Chartered says Sri Lanka’s US$ 2.5 billion sovereign bond sale a success that met price and volume requirement
The joint lead manager Standard Chartered has reportedly said Sri Lanka’s successful US$ 2.5 billion bond sale met the price and volume requirement and the timing helped draw in investors from Asia and rest of the globe.
“Post Asian holidays in the week of 2nd April, the Sovereign was advised to select the appropriate window in week of 9th April,” Executive Director and Head of Financial Institutions at Standard Chartered, Lakshan Goonetilleke has been quoted as saying in the local media.
Goonetilleke has reportedly said the strategy worked out very well, with books garnering strong demand from institutional investors in Asia and Europe as well as US investors, who traditionally have been big supporters of Sri Lankan issuances.
The local media has reported that Sri Lanka sold US$ 1.25 billion of five-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.
Chief Executive Officer of Standard Chartered, Jim Mc Cabe has been quoted as saying it was the seventh US dollar bond sale the bank helped manage.
“This also confirms the investor sentiment towards Sri Lanka and its continued growth story as we are committed to the development of the country and are here for good,” he has said.
Standard Chartered has stated that both price and volume objectives of the issuer were met.
There were US$ 3 billion of orders for the five-year bond from 235 investors and US$ 3.5 billion of orders for the 10-year bond from 190 accounts.
The statement by Standard Chartered on the success of Sri Lanka’s US$ 2.5 billion sovereign bond sale indicates the continuing investor confidence in the country’s economy. The continuous growth momentum in the country would further boost investor confidence in Sri Lanka and would also push for other foreign investors to consider investment opportunities in the country.
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