The Democratic Socialist Republic of Sri Lanka has sold $1 billion of fixed-rate senior unsecured 10-year bonds -- the largest and longest-dated sovereign from the South Asian island nation ever. The notes pay a 6.25% coupon and were re-offered at par for the same amount of yield. On a spreads basis that translated into 373.1bp over 10-year Treasuries.
The market has seen credit spreads tighten and yields rally recently and as a result, demand for emerging market paper and longer-dated notes has picked up. Sri Lanka's new credit took advantage of both those trends.
A single-B credit doesn’t appeal to everybody, but it is included in...
¬ Haymarket Media Limited. All rights reserved.
