UPDATE 1-Sri Lanka NSB's $1 bln global bond likely to be sold by end June
* NSB considers 10-year tenure bond - sources
* HSBC, Citibank, Barclays are to manage the bond
* Sri Lanka will not go for a sovereign bond this year
By Shihar Aneez
COLOMBO, June 7 (Reuters) - Sri Lanka's state-owned National Savings Bank (NSB) is likely to sell up to $1 billion of global bonds by the end of this month, officials said on Friday, the biggest corporate bond issue so far.
The bank's decision to tap the international market comes as the Sri Lankan government itself has decided not to go for an international sovereign bond this year after selling eurobonds for three consecutive years.
"We have given the clearance. Our maximum limit is $1 billion. We will see the rate and decide it," Deputy Treasury Secretary S.R. Attygalle told Reuters.
Three sources with knowledge of the deal said the proposed paper will be a 10-year bond. "Since yield on U.S. treasury is on the rise, the bond might be priced at a higher rate," one source said.
HSBC, Citibank NA and Barclays will be the lead managers for NSB's international bond sale, sources told Reuters in March.
The last major corporate issue was in 2012 when state-owned Bank of Ceylon sold a $500 million five-year bond at a 6.875 percent yield.
NSB is the only bank whose deposits are fully guaranteed by the government.
The bank's investments in government securities accounted for 72 percent of its total deposits of 422.06 billion rupees ($3.31 billion) as of Sept. 30, 2012.
- Vice-principal of South Korea school in ferry disaster commits suicide |
- After Nevada ranch stand-off, emboldened militias ask: where next?
- New Russia sanctions threats as Ukraine stalemate goes on |
- Florida man charged with murdering son so he could play video games
- All 338 Korean students, teachers rescued from sinking ferry - school official