CB calls for mangers to sell US $ 2bn sovereign bond

The Central Bank of Sri Lanka has published a request for proposals for lead managers/book runners for the US$ 2 billion sovereign bond issue in the coming months as well as for a potential liability management exercise.

Banks and investment firms that have acted as lead managers/book runners for emerging market sovereign bond issuances with a minimum of 10 issuances in 2017 are eligible to submit proposals. 

The dollar denominated bond issuance could be in single or multiple tranches with a fixed coupon and medium to long term maturities where non-resident investors will be eligible to invest at the primary issuances. 

The Central Bank is hoping to raise most of its foreign financing in early 2018 in order to take advantage of an excess of liquidity in global markets due to numerous sovereign debt maturities, and to stay ahead of interest rate increases expected from US Federal Reserve rate hikes.

The Central Bank announcement also asked for proposals regarding a possible liability management exercise, although the Liability Management Act is yet to be presented to parliament.

 The deadline for proposal submission is January 23, 2018.