Standard Chartered arranges largest $ 2.5b International Sovereign Bond Offering

Standard Chartered acting as a Joint Lead Manager arranged a $ 2.5 billion International Sovereign Bond Offering on behalf of the Democratic Socialist Republic of Sri Lanka. 

The bank successfully priced $ 1.25 billion each of 5 and 10 years Fixed Rate Senior Unsecured 144A/Reg S issuance for the Republic of Sri Lanka, making this the country’s 12th successful foray into the  US Dollar Bond market since 2007. The key objectives of the client were twin fold, which included price and size. The bank was successfully able to meet both these requirements. Orders flowed in steadily as soon as the transaction was announced with a strong participation from institutional investors across Asia, Europe and United States. The transaction had a final order book of over $ 3 billion in the five year tranche, achieving an oversubscription ratio of more than 2.4x, across over 235 accounts and a final order book of over $ 3.5 billion in the 10 year tranche, achieving an oversubscription ratio of more than 2.8x, across over 190 accounts. 

Commenting on the transaction Standard Chartered Executive Director Head of Financial Institutions Lakshan Goonetilleke said, “Post Asian holidays in the week of 2 April, the Sovereign was advised to select the appropriate window in week of 9 April. The strategy worked out very well, with books garnering strong demand from institutional investors in Asia and Europe; US investors, who traditionally have been big supporters of Sri Lankan issuances.”

Standard Chartered Chief Executive Officer Jim Mc Cabe said, “We are proud to be part of this success as this represents the largest ever bond offering by the Democratic Socialist Republic of Sri Lanka and incidentally is the seventh consecutive USD Bond offering Mandate for Standard Chartered. This also confirms the investor sentiment towards Sri Lanka and its continued growth story as we are committed to the development of the country and are here for good.”