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Bank of Ceylon, Sri Lanka sells US$500mn bond at 5.3-pct

Apr 09, 2013 (LBO) - State-run Bank of Ceylon, Sri Lanka's largest lender, said it had sold a 500 million US dollar 5-year bond at 5.
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325 percent attracting two billion dollars in orders from 140 European and Asian based investors.


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The bond was rated 'BB-' by Fitch. Bank of Ceylon said the sale was done with one rating and no road show.
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Lead managed by UBS, the bank initially went to the market for 300 million US dollars but sold 500 million US dollars after it was oversubscribed by 6.8 times.

Asian investors had taken 74 percent of the bond with rest being sold to investors in Europe.

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It was not marketed to investors based in the US.
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Bank of Ceylon also raised 500 million US dollars last year.

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"This transaction marks our second issuance in the USD bond market, and we are pleased to have captured a strong market window with this benchmark offering," P A Lionel head of international treasury and investment banking at Bank of Ceylon said.

"We are also encouraged by the strong response and the broad participation by both international investors and private banks.

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"

Last year's bond was priced at 6.875 percent but was trading in the secondary market around the coupon this year.

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