The Central Bank is preparing to issue Sri Lanka’s first Samurai bond of $ 500 million in October or November with the Cabinet paper to be presented this week.
Central Bank Governor Dr. Indrajit Coomaraswamy said the Cabinet paper would be presented tomorrow to approve the release of Request for Proposals (RFPs) and to appoint a steering committee to choose the lead manager.
“It could take two to three months. We were told that a good time for the Japanese market is October. We want to get ourselves ready as quickly as we can over the next couple of months and then depending on market conditions, we would seek to issue the Samurai bond.”
The Central Bank earlier said it had consultations with Japan Bank for International Cooperation (JBIC), which had said it was willing to give a 95% guarantee and a flexible fee. “We spoke to about a dozen institutional investors and they were all keen, especially with the JBIC guarantee.”