Stanchart ar­ranges US$ 2.5bn sovereign bond for Sri Lanka

Daily Mirror (Sri Lanka) - - FINANCE -

Stan­dard Char­tered act­ing as a Joint Lead Man­ager ar­ranged a US$ 2.5 bil­lion in­ter­na­tional sovereign bond of­fer­ing on be­half of the Demo­cratic So­cial­ist Repub­lic of Sri Lanka.

The bank suc­cess­fully priced US$ 1.25 bil­lion each of 5 and 10 years Fixed Rate Se­nior Unse­cured 144A / Reg S is­suance for the Repub­lic of Sri Lanka, mak­ing this the coun­try’s twelfth suc­cess­ful foray into the US Dol­lar Bond mar­ket since 2007.

The key ob­jec­tives of the client were twin fold, which in­cluded price and size. The bank was suc­cess­fully able to meet both these re­quire­ments. Or­ders flowed in steadily as soon as the trans­ac­tion was an­nounced with a strong par­tic­i­pa­tion from in­sti­tu­tional in­vestors across Asia, Europe and United States.

The trans­ac­tion had a fi­nal or­der book of over US$ 3 bil­lion in the 5 year tranche, achiev­ing an over­sub­scrip­tion ra­tio of more than 2.4x, across over 235 ac­counts and a fi­nal or­der book of over US$ 3.5 bil­lion in the 10 year tranche, achiev­ing an over­sub­scrip­tion ra­tio of more than 2.8x, across over 190 ac­counts. Com­ment­ing on the trans­ac­tion Lak­shan Goonetilleke, Ex­ec­u­tive Di­rec­tor Head of Fi­nan­cial In­sti­tu­tions at Stan­dard Char­tered said, “Post Asian hol­i­days in the week of 2nd April, the Sovereign was ad­vised to se­lect the ap­pro­pri­ate win­dow in week of 9th April. The strat­egy worked out very well, with books gar­ner­ing strong de­mand from in­sti­tu­tional in­vestors in Asia and Europe. U.S. in­vestors, who tra­di­tion­ally have been big sup­port­ers of Sri Lankan is­suances”

Jim Mc Cabe, Chief Ex­ec­u­tive Of­fi­cer of Stan­dard Char­tered said, “We are proud to be part of this suc­cess as this rep­re­sents the largest ever bond of­fer­ing by the Demo­cratic So­cial­ist Repub­lic of Sri Lanka and in­ci­den­tally is the sev­enth con­sec­u­tive US$ bond of­fer­ing man­date for Stan­dard Char­tered. 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.”

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