The Central Bank on Tuesday announced that its $1 billion, 10 year Sovereign Bond drew offers of over $6.3 billion against the $1 billion on offer.
The issue with a coupon rate of 6.25% offer on September 27 is the third international sovereign bond offering, following issues in 2007 and 2009.
“The offering attracted an order book that exceeded $6.3 billion within 14 hours of opening thereby being over-subscribed by more than six times, clearly underscoring the high global investor confidence based on the recent progress and the future prospects in Sri Lankan economy since the end of the conflict in the country,” the banking regulator said in a statement.
It said orders were received from 362 investors globally and by geographic distribution, 52.5% of the bonds were allocated to investors in the US, 25% to investors in Europe and 22.5% to investors in Asia.
By investor type, 85% of the bonds were allocated to Fund and Asset Managers and the balance to Pension Funds, Insurance companies and banks.
The Bank said the government will use the proceeds from the bond issue to finance its current infrastructure and to restructure a part of the existing debt stock of the government to improve overall public debt management.
Bank of America Merrill Lynch, Royal Bank of Scotland and HSBC functioned as Joint Lead Managers and Joint Book Runners of the offering while Bank of Ceylon participated as Co-Manager. |
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