By David Yong and Gabrielle Coppola
Sept. 27 (Bloomberg) -- Sri Lanka sold $1 billion of dollar-denominated bonds due in 10 years, the nation’s second overseas debt sale since the end of a 26-year civil war in May 2009.
The securities were sold to yield 6.25 percent, according to Bloomberg data. Bank of America Corp., HSBC Holdings Plc and Royal Bank of Scotland Group Plc managed the sale, assisted by Bank of Ceylon, said a person familiar with the offering who declined to be identified because he’s not allowed to speak publicly.
Standard & Poor’s raised Sri Lanka’s credit rating one level to B+ from B on Sept. 14, four levels below investment grade. Fitch raised its rating outlook to positive from stable on Sept. 21. The sale is Sri Lanka’s third global offering, after raising $500 million each from five-year bond auctions in October 2007 and October 2009.
“They came in against a positive backdrop for emerging- market bonds and it should be no surprise if they price at the lower end of the guidance,” said Jetro Siekkinen, a money manager in Helsinki at Aktia Asset Management, who oversees $7.8 billion including Sri Lanka’s 2015 dollar debt. He plans to buy the bonds.
Sri Lanka’s debt has returned 40.7 percent since May 18, 2009, according to JPMorgan Chase & Co.’s EMBI Global Index. That’s when government forces defeated Tamil Tiger rebels. The return compares with a 19 percent gain in China, 24 percent in Brazil and 27 percent in Russia.
To contact the reporters on this story: David Yong in Singapore at dyong@bloomberg.net; Gabrielle Coppola in New York at gcoppola@bloomberg.net
source - noir.bloomberg.com
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