Sri Lankan debt

SriLankan Airlines' bond plans June take-off

Even though it will be guaranteed by the government, the crucial question for investors will be how much SriLankan Airlines will need to pay over the sovereign to get its bond away.
Will SriLankan Airlines' bond take off?
Will SriLankan Airlines' bond take off?

SriLankan Airlines, a troubled airline of a troubled government, hopes to issue its second US dollar bond later this month. The state-owned airlines’ litany of woes include being under criminal investigation, suffering losses for nearly a decade and lawsuits from foreign companies.

It plans to issue $175 million 5-year Reg S paper guaranteed by the Sri Lankan government later in June. If the sale goes ahead, proceeds will be used fully to redeem the airline's first US dollar bond of $175 million due to mature on June 27.

Price guidance for the proposed bond will be given on Thursday, FinanceAsia understands. The government guarantee means...

¬ 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