Cabinet nod to study issuance of yen, renminbi and eurobonds

Thursday, 23 August 2018 00:00 - - {{hitsCtrl.values.hits}}

The Cabinet has approved a proposal presented by Finance Minister Mangala Samaraweera to appoint a board of officials to study and provide recommendations regarding the capability of issuing yen, renminbi and eurobonds.

The Central Bank is to release its first Panda bond, expected to be about $ 250 million, before the end of the year.

Central Bank Governor Dr. Indrajit Coomaraswamy told reporters earlier this month that the monetary authority was “working towards a $ 250 million panda bond issuance at the end of the year”. The bond was initially discussed during a road show in China where the Sri Lankan delegation met Chinese banks, insurance companies, and other institutional investors. The Central Bank was also encouraged by the People’s Bank of China, which is the Chinese Central Bank.

The Government has traditionally restricted itself to dollar bonds but with increased debt repayments, from next year, the Central Bank is looking for alternative methods of raising the necessary funds. The Central Bank expects to close the year with reserves of about $ 9 billion.