New govt. delays Samurai bond issue

The new government has delayed Sri Lanka’s maiden US$ 500 million (60 billion yen) 10-year Samurai bond issuance, which was scheduled this month.

“The new government wants to take a moment to review the financing programme. Samurai bond issuance will get delayed a little bit giving the government a chance to review the financing programme. Hopefully, there will be a window in January,” Central Bank Governor Dr. Indrajit Coomaraswamy said.

Mizuho Securities Company Ltd., SMBC Nikko Securities Inc. and Mitsubishi UFJ Morgan Stanley Securities Co. Ltd. have been appointed as the three joint lead managers for the issuance.

Sri Lanka’s next large debt repayment is due in October 2020. 

The gross official reserves stood at US$ 7.8 billion by the end of October. 

For the next five years onwards, Sri Lanka is to pay an average of US$ 3 billion a year as loan repayment.