Sri Lanka Equity Forum
Dear Reader,

Registration with the Sri Lanka Equity Forum would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
Sri Lanka Equity Forum

Discussion Forum for Stock Market Investors in Sri Lanka

සිංහල පරිවර්තනය
Submit Post
Submit Post

Latest topics

» #PM Crisis#
by Ryan Hudson Today at 9:16 am

» Financial Reports Q-3 2018
by ruwan326 Today at 7:19 am

» ##FUN TOONS###
by ruwan326 Today at 7:06 am

» TBs worth Rs.14.2 bn issued to SriLankan in 2012
by ruwan326 Today at 6:42 am

» MARKET RISE - GUARANTEED
by samaritan Yesterday at 9:22 am

» SRI LANKA @ 2020
by ruwan326 Yesterday at 7:24 am

» Dealing by directors
by ruwan326 Fri Nov 16, 2018 9:08 pm

» Summary of Key Announcements during the week
by ruwan326 Fri Nov 16, 2018 9:06 pm

» Daily Foreign Transactions
by ruwan326 Fri Nov 16, 2018 9:05 pm

» CSE WEEKLY
by ruwan326 Fri Nov 16, 2018 9:02 pm

» BFN Price HOLDING ON AS THE DEAL COME CLOSER
by sanjulanka Fri Nov 16, 2018 1:29 pm

» Another Finance sector deal UBC UBC UBC Deal
by kalu351 Fri Nov 16, 2018 10:56 am

» BFN BFN BFN BFN BFN DEAL ......WITH CHINESE BANK
by kalu351 Fri Nov 16, 2018 10:54 am

» MARKET CRASH - GUARANTEED
by Maharaja Fri Nov 16, 2018 9:32 am

» Q-TO-Q Financial Report-Financial Performance- Period ended 30 September 2018
by ruwan326 Thu Nov 15, 2018 9:00 pm

» CB raises key rates in surprise move to support currency
by Miss-Sangeetha Thu Nov 15, 2018 4:59 pm

» President rejects NCM brought against PM, Govt.
by ranferdi Thu Nov 15, 2018 2:36 pm

» DIVIDEND ANNOUNCEMENTS- OCT/NOV
by ruwan326 Thu Nov 15, 2018 1:59 pm

» Supreme Court issues stay order on Gazette dissolving Parliament
by THUWA Wed Nov 14, 2018 5:28 pm

» CSE THIS WEEK
by ruwan326 Wed Nov 14, 2018 8:27 am

» Veterans return to lead state banks
by ruwan326 Wed Nov 14, 2018 8:21 am

» Collect ODEL Range Rs. 23-25 .......Target Price over Rs.35
by soileconomy Tue Nov 13, 2018 8:54 pm

» අනං## මනං ##
by ruwan326 Tue Nov 13, 2018 8:52 pm

» JKH News & Reports
by ruwan326 Tue Nov 13, 2018 8:11 pm

» Survey - Individual Investors' Behaviour and Investment Performance
by eroshans Tue Nov 13, 2018 3:49 pm

» USD/MXN Can Face A Bearish Reversal
by GersonH Mon Nov 12, 2018 10:22 pm

» EURUSD breaks major horizontal support
by GersonH Mon Nov 12, 2018 10:18 pm

» EURCHF is headed south
by GersonH Mon Nov 12, 2018 10:14 pm

» EURUSD: the pair is close to the lower boundary of the B-B channel
by GersonH Mon Nov 12, 2018 10:12 pm

» Parliament dissolved from midnight ????????
by Yahapalanaya Mon Nov 12, 2018 6:24 pm

You are not connected. Please login or register

Sri Lanka Equity Forum » Stock Market Talk » Govt. concludes $ 1.5 b 10 year Sovereign Bond with big success -

Govt. concludes $ 1.5 b 10 year Sovereign Bond with big success -

Go down  Message [Page 1 of 1]

Vacations To Sri Lanka

avatar
Manager - Equity Analytics
Manager - Equity Analytics
http://www.ft.lk/article/613512/Govt--concludes---1-5-b--10-year-Sovereign-Bond-with-big-success

[size=48]Govt. concludes $ 1.5 b 10 year Sovereign Bond with big success
[/size]




0


Comments /  597 Views / Saturday, 6 May 2017 00:00
 2  12




  • Final order book in excess of $11 b achieving an oversubscription ratio of over 7 times, spread across 500 participating accounts 
  • Bonds pricing at 6.20% reflecting a 42.5 basis points compression well inside the initial price guidance
  • 2017 spread has substantially declined indicating a reduction in the risk premium demanded by the investors
  • Bonds allocation well diversified with 58% going to the US, 22% to Europe and remaining 20% to Asia
  • CB says success clearly reflects investors' continued confidence in Sri Lanka and their positive outlook on the Sri Lankan economic growth story


 
The Government yesterday successfully concluded its 10 year Sovereign Bond to raise $ 1.5 billion with the issue drawing over $ 11 billion in demand worldwide enabling an attractive pricing. 

The Central Bank in a statement said that it, on behalf of the Government of Sri Lanka (GoSL), successfully priced a new $1.5 billion 10-year International Sovereign Bond (Bonds) on 4 May 4, 2017. The bonds have been rated ‘B1’, ‘B+’ and ‘B+' by Moody's Investors Service, Standard and Poor’s and Fitch Ratings respectively.

This marked Sri Lanka’s eleventh U.S. dollar benchmark offering in the international bond markets since

2007 and is a clear testament of the international investor community’s continued support for Sri Lanka

through the years. Citigroup, CITIC CLSA Securities, Deutsche Bank, HSBC, ICBC International, J.P.

Morgan and Standard Chartered Bank acted as the Joint Lead Managers and Bookrunners on this

successful transaction.

The transaction was undertaken on the back of a strong market window post the Federal Open Market

Committee minutes release and ahead of the Nonfarm payroll and the French elections. The transaction

also coincided with the International Monetary Fund staff-level agreement that was released a day before on 3 May, 2017.
The transaction with an initial price guidance of 6.625% area was announced during the Asia morning of

4 May, 2017, and saw strong interests from a wide range of high quality investors, allowing Sri Lanka to tighten final price guidance to 6.250% area (+/-5 basis points) at the Asia evening on the back of books which were in excess of $7.5 billion. The bonds eventually priced during New York hours at 6.20% reflecting a 42.5 basis points compression, well inside the initial price guidance for a final transaction size of $1.5 billion.

The final order book was in excess of $11 billion, achieving an oversubscription ratio of over 7 times, spread across 500 participating accounts. 

"This clearly reflects investors' continued confidence in Sri Lanka and their positive outlook on the Sri Lankan economic growth story," the Central Bank said. Further, compared to the 2016 spread between US Treasury 10 year yield and 10 year Sri Lanka bonds yield, 2017 spread has substantially declined indicating a reduction in the risk premium demanded by the investors, it added.

Geographical distribution was well diversified, with 58% of the final allocations going to the U.S., 22%

to Europe, and the remaining 20% to Asia. By investor type, the split was 83% to fund managers, 9% to

banks, 5% to insurance and pension funds, and the remaining 3% to other investors.




 
[size=36]Govt. raises $285 m via SLDBs[/size]
​The Government has raised a further $285.18 million via the issuance of Sri Lanka Development Bonds (SLDBs) of different tenure and at fixed and floating rates. 

The Central Bank accepted $89.75 million on a 4 year 10 months floating rate option, $70 million at a 1 year fixed rate, $62.15 million on 1 year 10 months floating option, $44.28 on 2 year 10 months floating and $19 million on 1 year floating.  Total bids received were $497.85 million with majority ($ 427 million) coming for floating options.

The Weighted Average Fixed Rate was 426.57 basis points and Weighted Average Margin (bps) over a 6-month LIBOR (floating) ranged from 254.79 and 412.06.
- See more at: http://www.ft.lk/article/613512/Govt--concludes---1-5-b--10-year-Sovereign-Bond-with-big-success#sthash.23Nr7itV.dpuf

Back to top  Message [Page 1 of 1]

Permissions in this forum:
You cannot reply to topics in this forum