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Sri Lanka NSB’s bond road show to begin on Aug 26

Aug 23, 2013 (LBO) - Sri Lanka's state-run National Savings Bank will kick off a road show from August 26 to sell a dollar bond depending on market conditions, market sources said.
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Bloomberg newswires said investor meetings will be held in New York, Boston, Los Angeles, London and will wrap up on September 03 in Singapore.
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NSB is going to the market amid some turmoil in international markets. International bond market sources say conditions are much tighter compared to when state-run Bank of Ceylon sold a 500 million US dollar bond.

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International capital markets are just beginning to open after August holiday and pause following Federal Reserve monetary tightening.

Fitch Ratings has given the bond an expected rating of 'BB-'.

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NSB will one of the first large below investment grade emerging market issuers to tap the markets since Fed jitters began.


NSB was initially hoping to raise a billion US dollars.

Raising a smaller volume or reducing the tenure will help bring down the rate, analysts said.

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Indonesia paid 5.45 percent for a 10-year billion dollar bond in July up from 3.5 percent for a 1.5 billion bond sale in April.

Sri Lanka's National Development Bank and DFCC Bank will be looking to NSB to set the benchmark to go the market, they said.

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The two banks are looking to raise 250 million US dollars each.

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