investors-pile-into-sri-lankas-500-million-sovereign

Investors pile into Sri Lanka's $500 million sovereign

The country's second-ever dollar bond attracts $6.8 billion of demand as investors expect a growth boost from the post-war restructuring now underway.

Two years after its debut offering, the Democratic Socialist Republic of Sri Lanka returned to the international bond markets with its second-ever sovereign dollar bond, and met with overwhelming demand. The $500 million deal comes after the civil war that has plagued the country for 26 years finally ended in May.

The country needs capital to pay for massive reconstruction needed in the wake of a quarter century of armed conflict, but the timing of the bonds was well chosen to make the most of the approval in August of a $2.6 billion loan from the International Monetary Fund and positive comments from both Fitch and Standard Poor's. Indeed, the latter actually revised its outlook...

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