HSBC clinches award for best Sri Lanka deal

Tuesday, 20 December 2011 00:18 - - {{hitsCtrl.values.hits}}

Sri Lanka’s $1 billion 10-year sovereign bond issue clinches the title for being the ‘Best Sri Lanka Deal’ awarded by the recently concluded Finance Asia Country Awards held in Hong Kong.

HSBC played an integral role by winning the Bond mandate by the Government of Sri Lanka and acting as Joint Lead Manager and Bookrunner. The Bank has won all 4 Bond mandates to date starting with its inaugural issue in 2007 and subsequently in 2009, 2010 and 2011. The Government of Sri Lanka’s second landmark USD 1 billion issue saw a record subscription and closed at a price of 6.25% for 10 year funds.

Nick Nicolaou, Chief Executive Officer, HSBC Sri Lanka said “HSBC was appointed the Rating Advisor for the Government in 2010 and worked closely in securing an upgrade from Fitch Ratings. Sri Lanka’s sovereign bond was well-timed to take advantage of a ratings upgrade from Fitch to BB- from B+. Despite the currency being devalued by 3%, the bonds still held up above par in December. Its ability to raise $1 billion of cash amid volatile markets is testament to how far Sri Lanka has come since ending its civil war and clearly resonates with investors, who continue to show strong demand.”

The Finance Asia award was won for the second time in recognition of the country’s healthy economic growth and infrastructure development and the success of the issue in a very turbulent market.

Lakshan Goonetilleke, Senior Manager Investment Banking stated “While this is not the Sovereign’s 10-year debut, the bond further establishes the sovereign’s following among global investors and creates a pool of liquidity it can tap in the future, bringing it closer to its more seasoned peers, the Philippines and Indonesia”.

The Bank has also continuously supported the government’s infrastructure drive by funding over USD 1.5 billion on infrastructure projects. Over the past 4 years HSBC has successfully raised financing in excess of USD 4 Billion to finance projects such as Telecommunication Network expansion, Highway and Bridge construction, Flyovers, Solar Irrigation, Electricity and Port Development.

HSBC as a Group was awarded 10 accolades at the Finance Asia Country Awards for its GBM achievements in Asia including Deal of the year, best equity deal and best IPO, best local currency bond, best offshore renminbi offering and best Islamic Financing. HSBC has a team of over 300 Professionals in the region who specialise in and have strong Debt Capital Market capabilities in Asia.

The Hongkong and Shanghai Banking Corporation Limited is the founding and a principal member of the

HSBC Group which, with around 7,500 offices in over 80 countries and territories and assets of US$2,691 billion at 30 June 2011, is one of the world’s largest banking and financial services organisations.