SL eyes launch of US$ 500mn Samurai bond in early Nov.

Sri Lanka is likely to launch its maiden US$ 500 million (60 billion yen) 10 -year Samurai bond next month prior to the presidential election.

The Cabinet of Ministers last week approved the appointment of Mizuho Securities Company Ltd., SMBC Nikko Securities Inc. and Mitsubishi UFJ Morgan Stanley Securities Co. Ltd. as the three joint lead managers for the issuance.

Central Bank Governor Indrajit Coomaraswamy said the Japan Bank for International Co-operation (JBIC) agreed to provide 95 percent guarantee for the bond along with the Japanese government’s sovereign risk.

“We hope to get a very good price, because of that. The lead managers will do the extensive paperwork and they are also expected to negotiate a competitive fee from JBIC,”
he said. 

Although the Central Bank would have preferred to issue the bond in late October, the Governor pointed out that with extensive paperwork which includes translation, the issuance may take place within first 10 days of November, before the presidential elections scheduled on November 16.  

The issuance is required to take place within six weeks from the appointment of lead managers.