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Sri Lanka launches 2022 sovereign bond

July 17, 2012 (LBO) - Sri Lanka has launched a 10-year sovereign bond with order books opening in Asia on an initial price guidance of 6.125 percent, sources familiar with the issue said. Since its maiden 500 million US dollar 5-year bond in 2007, Sri Lanka has gone to the market four times, with the last two issues being 10-year billion dollar tranches.

Last year Sri Lanka launched a bond with a slightly higher price guidance. In the secondary market Sri Lankan bonds have been trading at a premium to issue price in recent months.

Sri Lanka is aiming to raise a billion US dollars from the bond, a part of which will be used to repay a maturing 500 million US dollar bond in October, officials said earlier.

Bank of America Merryll Lynch, Citi, Barclay and HSBC are lead managing the bond sale. State-run People's Bank is a co-lead manager.

Sri Lanka has had several investor meetings concluding in London Monday.

Sri Lanka has a B1 positive rating from Moody's, a B+ stable from Standard & Poor's and a BB- stable from Fitch.

Sri Lanka is going to the markets amid uncertainty in European bond markets.

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