The unequivocal Sri Lankan government guarantee we reported on recently has allowed the national airline to price its US$175 million debut offering of five-year bonds late yesterday at par to yield 5.3%. The Reg S deal finished 32.5bp inside the initial guidance. The bonds offered a 65bp premium over the sovereign paper due for 2019, which had a 4.65% yield prior to the announcement. The airline’s bonds jumped 1 point to yield 5.07%, about 50bp over where the sovereign was traded this morning. The Sri Lankan government backing helped the airline secure a BB- and B+ rating from Fitch and

This content is restricted to site members.

If you are an existing user, please login below.
New users may register below.

Existing Users Log In