The Issue was the seventh benchmark offering by Sri Lanka since 2007. Citigroup, The Hongkong and Shanghai Banking Corporation Limited and Standard Chartered Bank acted as Joint Lead Managers/Bookrunners on the transaction. Fitch Ratings, Moody's Investors Service and Standard and Poor’s have rated the Issue at 'BB-', ‘B1’ and ‘B+' respectively.
The Issue was announced during the Asia afternoon on April 7, 2014 with an initial price guidance of 5.50 per cent per annum. With the post announcement interest from investors across Asia, Middle-East, Europe and the USA, Sri Lanka priced the Issue at a yield of 5.125 per cent. This tighter yield reflects the continued confidence that the international investors have placed in the sovereign bond issuance of Sri Lanka. The final order book stood at US$ 4.25 billion, an oversubscription ratio of 8.3 times, from 287 accounts, achieved within a six-hour bookbuild period. Distribution of investors was very well diversified, with Asia taking 32 per cent, Europe 22 per cent and the US at 46 per cent. Global Fund Managers were the largest investors in the transaction, representing 81 per cent, with Banks, Private Banks and insurance agencies taking 13 per cent, 3 per cent and 3 per cent respectively.