Sri Lanka develops investor following with $1 billion global

Sri Lanka raised $1 billion in the debt markets early Tuesday morning, shrugging off concerns about its fiscal deficit and recent currency devaluation. The sovereign attracted a massive $10.5 billion order book from 425 accounts, a sign that it continues to broaden its following among investors.

“Since Sri Lanka issued its bond in 2007, it has improved its pricing each year and broadened its investor base,” said one source. “About 140 investors participated in its 2007 bond and, last year, 315 investors participated. This year, 425 investors came in. They could have upsized the bond given the strong demand, but they chose to be disciplined.”

According to...