|
|
 |
 |
 |
| Tuesday, 23 November 2004 |
 |
|
 |
Business | |
| News Business Features Editorial Security Politics World Letters Sports Obituaries
|
SC Bank joint leads $ 100 m. offering for SLT Standard Chartered (SC) Bank has successfully priced a US$ 100 million 5 year Reg S US$ Notes offering for Sri Lanka Telecom ("SLT"). The transaction was priced at par with a coupon of 6.875%. This equates to a spread over 5 year US Treasuries of 340bps or Swaps (libor) plus 300bps. The roadshow plan was to bring the company to centres including Hong Kong, Singapore, London, Bahrain and Dubai. As the transaction progressed and investor orders increased, the decision was to accelerate the pricing when the roadshow was on its second stop in Singapore. The pricing was concluded on November 19. The transaction was 11 times oversubscribed. This landmark transaction marks the first US$ bond from an entity in Sri Lanka; the first fixed rate issue from an entity in Sri Lanka and the first internationally rated issue from an entity in Sri Lanka SLT is rated B+ by Fitch and B+ by Standard and Poor's. Head of Client Relationships for Standard Chartered Bank in Sri Lanka Kimarli Fernando said, "Over 95 international investors participated in the transaction and the distribution of the transaction was wide with approximately 28% from Europe, 63% from Asia, 5% from the Middle East and 4% from offshore US funds. There were no investors from Sri Lanka in line with the approval from Central Bank of Sri Lanka". "In terms of investor type the deal went 56% to asset managers, 34% to retail, 7% to banks and 3% to insurance companies. Clearly a broad distribution," Fernando said. Standard Chartered Bank and UBS were joint lead managers and joint bookrunners to the transaction. CEO SCB, Sri Lanka, Vishnu Mohan said, "we are pleased that we have been able to assist local corporates access international funding. Using our local presence, as we have been here for over a century and in depth local knowledge and drawing on our strong international presence and expertise, we have provided local companies with access to international investors. This opens new avenues to access diversified funding sources. We are very pleased by the response received from international markets on all these transactions because it provides benchmarks for other entities in Sri Lanka." |
|
News | Business | Features
| Editorial | Security
Produced by Lake House |
