Thursday, August 13, 2009

Sri Lanka says to issue 5-yr, $500 mln sovereign bond

COLOMBO, Aug 13 (Reuters) - Sri Lanka will issue a new five-year, $500 million sovereign dollar bond in late September or early October and is aiming for a yield of 7 percent, Sri Lanka's central bank said on Thursday.

'Minimum benchmark size in the international capital market is $500 million. So our plan is to go for maximum $500 million,' C.J.P. Siriwardena, superintendent of the central bank's public debt department, told Reuters.

'Our plan is for a minimum five-year considering the medium-term debt obligations. With new developments and the foreign investments in Sri Lanka development bonds, the ideal rate for the country is somewhere around 7 percent.' (Reporting by Shihar Aneez; Editing by Bryson Hull)
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