Democratic Socialist Republic of Sri Lanka USD 1,500 million Dual-Tranche International Sovereign Bond Issuance

The Central Bank of Sri Lanka (“CBSL”), on behalf of the Government of Sri Lanka (Sri Lanka), marked its return to the U.S. dollar bond markets with a successful issuance of U.S.$500 million 5.5-year and U.S.$1.0 billion 10-year International Sovereign Bonds (Bonds) on July 11th, 2016. This marks Sri Lanka‟s 10th US Dollar bond issuance and the first dualtranche offering.

The Bonds have been rated 'B1', „B+‟ and „B+' by Moody's Investors Service, Standard and Poor‟s and Fitch Ratings, respectively. Citigroup, Deutsche Bank, HSBC and Standard Chartered Bank acted as the Joint Lead Managers and Bookrunners of this successful transaction.

Despite the high volatility in the global financial markets following the historic U.K. referendum in June regarding their membership of the EU, the Bonds saw strong interests from a wide range of high quality investors. Orders totaled U.S.$2.5 billion for the 5.5-year tranche and U.S.$3.0 billion for the 10-year tranche. Both the 5.5-year and 10-year tranche were priced well inside the initial price guidance of 6.125% area and 7.125% area, with a coupon of 5.750% and 6.825% at par, respectively. This is a testament to investors' continued confidence in Sri Lanka and their positive sentiment on the economic outlook of Sri Lanka.

Driven by high quality institutional accounts globally, both the 5.5-year and 10-year tranche attracted orders from over 200 accounts each. The 5.5-year tranche saw allocations of 35% to the U.S., 37% to Europe, and the remaining 28% to Asia. By investor type, the split was 85% to fund managers, 8% to insurance and pension funds, 3% to banks, and 4% to private banks. The 10-year tranche saw allocations of 62% to the U.S., 28% to Europe, and the remaining 10% to Asia. By investor type, the split was 91% to fund managers, 7% to insurance and pension funds, 1% to banks and 1% to private banks.



This press release is not an offer of securities for sale in the United States. The securities referred to herein have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”), or any state securities laws of the United States, and may not be offered or sold in the United States absent registration or an applicable exemption from, or in a transaction not subject to, the registration requirements under the Securities Act and applicable state securities laws of the United States. Any public offering of securities to be made in the United States will be made by means of a prospectus that may be obtained from the issuer and that will contain detailed information about the issuer. Nothing in this press release shall constitute an offer to sell or the solicitation of an offer to buy securities in any jurisdiction in which such offer or sale would be unlawful. A rating is not a recommendation to buy, sell or hold the securities and may be subject to suspension, reduction or withdrawal at any time by the rating agency.


Published Date: 

Tuesday, July 12, 2016