HSBC part­ners govt. for 12th suc­ces­sive sovereign bond is­sue

Daily Mirror (Sri Lanka) - - FINANCE -

The Cen­tral Bank of Sri Lanka (CBSL), on be­half of the Demo­cratic So­cial­ist Repub­lic of Sri Lanka, suc­cess­fully launched and raised US$ 2.5 bil­lion in a dual-tranche 5 and 10-year bond.

The trans­ac­tion was the twelfth U.S. dol­lar bench­mark of­fer­ing in the in­ter­na­tional bond mar­kets by Sri Lanka since 2007, and its largest offshore bond of­fer­ing ever, out­lin­ing Sri Lanka’s po­si­tion as a key Asian Sovereign is­suer.

HSBC acted in the ca­pac­ity of Joint Lead Man­ager, Bookrun­ner and Rat­ings Ad­vi­sor to the Gov­ern­ment of Sri Lanka for this bond is­suance.

The size of the new 5-year bond was US$ 1.25 bil­lion with a coupon of 5.75 per­cent p.a., whilst the size of the new 10-year bond was US$ 1.25 bil­lion with a coupon of 6.75 per­cent p.a.

The fi­nal or­der­books stood at US$ 3 bil­lion across over 235 ac­counts and US$ 3.5 bil­lion across over 190 ac­counts for the 5 and 10-year is­suances re­spec­tively.

The strong in­ter­est shown from a wide range of high qual­ity in­vestors across the US, Europe and Asia, al­lowed the sovereign to tighten price guid­ance by 25bps each across both tranches, con­firm­ing its po­si­tion as a premier is­suer in the cap­i­tal mar­ket.

Mark Prothero, CEO HSBC Sri Lanka and Mal­dives said: “The sovereign an­nounced a dual tranche of­fer­ing on 11th of April 2018, and once again dis­played its savvi­ness to re­main nim­ble and re­spon­sive to mar­ket con­di­tions and suc­cess­fully cap­tur­ing a sta­ble mar­ket win­dow. This trans­ac­tion sig­nals the con­tin­ued con­fi­dence placed by the in­ter­na­tional in­vestor com­mu­nity in the coun­try’s strong credit and growth story.

HSBC has a rich his­tory that spans for over 125 years here in Sri Lanka and is the largest in­ter­na­tional bank in Sri Lanka em­ploy­ing over 4,000 peo­ple in­clud­ing our Global Ser­vice Cen­tre in Colombo. This man­i­fests our strong and con­tin­ued com­mit­ment to the coun­try. We have part­nered with the Sovereign on all of its in­ter­na­tional bond is­suances since 2007 and we are proud to sup­port the coun­try on its growth jour­ney.”

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