Sri Lanka issues tightly priced $1 billion bond

The country was able to price Asia’s first sovereign bond of the year within its existing curve, with a bulk of US investors buying into the nation’s strong credit story.

Sri Lanka on Monday sold Asia’s first sovereign note a $1 billion five-year fixed-rate bond of the year, achieving pricing inside its existing curve as investors rush to hold the emerging market’s rarely offered notes.

The 144aReg S bond, the country’s first since July 2012, ended up pricing 25bp tighter than its initial price guidance of 6.25%, according to a term sheet seen by FinanceAsia.

The nearest comparable for the note was Sri Lanka’s existing 2022s, which were trading around a cash price of 92.75 at a yield of 7.02% at time of pricing. After adjusting the curve, fair value of the new bonds...

¬ Haymarket Media Limited. All rights reserved.

FinanceAsia has updated its subscription model.

Registered readers now have the opportunity to read 5 articles from our award-winning website for free.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222

Article limit is reached.

Hello! You have used up all of your free articles on FinanceAsia.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences. To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222