Sri Lanka is awaiting approval from the Cabinet of Ministers to go ahead with a planned dollar bond issue, which is likely to take place shortly.
“Within two to three weeks a decision will be made” a source closely working with the matter revealed.
According to the source, the primary aim of raising dollars via the bond issue would be to settle the debt of US$ 500 million, which Sri Lanka raised through a 5 year dollar bond issue in 2007.
“This will mature in October, so we have to settle it” the source said.
The country has already received proposals from a number of international banks to take part in dollar bond issue, while Sri Lanka is likely to mandate either 3 or 4 banks as done in the past.
Sri Lanka during the last 5 years has often tapped the dollar bond market after making its debut in 2007.
The country in the past has selected Banks such as Bank of America, Merril Lynch, Barclays Capital PLC, HSBC and the Royal Bank of Scotland to help raise dollar bonds from the international market.
In 2011, it raised Rs. 1 billion via a 10 year sovereign dollar bond at an interest rate of 6.25%.
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