10th July 2011, www.island.lk
Public officials in the Central Bank and Treasury are observing radio silence ahead of the US$ 1 billion sovereign bond issue to international capital markets. This is so that Sri Lanka can observe laws as laid down by the US capital markets regulator governing such issues, preventing investors from being unduly influenced by the issuer.
According to newswire services, international banks managing the issue for Sri Lanka would hold investor meetings starting Monday, July 11, but The Island Financial Review could not confirm this with officials because of the radio silence imposed on them.
This radio silence has been observed before, and is a sign that the US$ 1 billion bond issue is at hand, but no official would comment.
As reported in these pages last week, Cabraal speaking to foreign media said Sri Lanka warranted a sovereign ratings review given the post conflict macroeconomic developments, which should give the latest bond issue a yield bordering 6 percent or lower. Fitch Ratings had recently said the ratings ‘could’ be upgraded.
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