SL ready to repay $ 1.5 b bonds in 2019: CB

Thursday, 1 November 2018 01:08 - - {{hitsCtrl.values.hits}}

Says making efforts to diversify foreign funding sources outside conventional ISBs

The Central Bank has already made arrangements to repay international bonds worth $ 1.5 billion maturing in January and April 2019, the Public Debt Department of the monetary authority said yesterday.

The Government has been issuing International Sovereign Bonds (ISBs) since 2007. The Government has maintained an unblemished record on servicing of its debt obligations timely, including ISBs, since independence, the Central Bank said in a statement.

ISBs issued in January and April 2014 in $ 1,000 million and $ 500 million, respectively, are due to mature in January and April 2019.

“The Government has already made pre-funding arrangements for meeting the maturing ISB obligations in 2019 through proceeds of divestment of non-strategic assets and funding through syndicate arrangements,” the statement added.

While exploring an ideal window to further access international capital markets, the Government and Central Bank have already initiated necessary actions to further diversify international market-based foreign funding sources to jurisdictions outside conventional Eurodollar ISB issuances.

Central Bank Governor Dr. Indrajit Coomaraswamy announced earlier this month that the Central Bank was working to issue Panda and Samurai bonds and was also working on swap arrangements with the central banks of Qatar and Oman.

Fitch ratings estimates that Sri Lanka will have to repay about Rs. 15 billion from 2019-2022.