Seven investment banks, including J.P. Morgan and Merrill Lynch, have made proposals to the Central Bank in a bid to be a lead manager or book runner in the issue of a $500 million international sovereign bond, the second in three years.
Central Bank Governor Ajith Nivard Cabraal said the other five investment banks were the HSBC, the UBS, Royal Bank of Scotland, Morgan Stanley and Barclays.
The seven were among 12 which accepted an invitation to make proposals to be lead managers of the $500 bond issue being offered by the CB.
Mr Cabraal said the presentations were made over three days in Colombo and ended on Friday. “We hope to finalise the selections by Wednesday,” he said. The bond is expected to be placed in the international market next month.
The CB announced the offer earlier this month. In mid 2007, the CB marketed a $500 million bond which drew criticism from the opposition on the basis that the interest rate was too high, among other issues. Bonds are generally issued to raise money for government spending. |
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