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Sri Lanka's NSB to sell minimum of $500 mln 5-yr bond- sources
August 26, 2013 / 2:51 AM / in 4 years

Sri Lanka's NSB to sell minimum of $500 mln 5-yr bond- sources

COLOMBO, Aug 26 (Reuters) - Sri Lanka’s state-run National Savings Bank (NSB) plans to raise a minimum $500 million through the sale of a likely five-year bond with a target yield around 7 percent, sources close to the deal told Reuters on Monday.

The final decision on size of the bond and tenure will depend on market appetite, the sources said.

The bank, which had originally targeted $1 billion, 10-year bond, has appointed Citibank, Barclays, and HSBC as the lead managers for the lender’s first global corporate bond and will start roadshows on Monday in New York followed by Boston, Los Angeles, London, Hong Kong, and Singapore.

“It will be a minimum of $500 million with minimum five-year tenure, but depending on the market appetite, the size and tenure will be decided,” one source said on condition of anonymity.

“Currently the markets are highly volatile. Our current bonds in the secondary market are trading around 7 percent. That gives some kind of a signal on the yield.”

A second source confirmed the NSB’s bond sales plans and details.

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