SriLankan Airlines prints 17x subscribed debut bond

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By Isabella Zhong
26 Jun 2014

SriLankan Airlines issued the first bond from the country’s corporate sector for nearly a decade on Monday. Flying high on unconditional sovereign support and rarity value, the debut deal attracted an order book that was a staggering 17x subscribed. But while some investors saw attractive relative value, others were after more compensation for higher perceived risk, writes Isabella Zhong.

The national carrier is the first Sri Lankan corporate to tap international bond markets since November 2004, although FIG credits Bank of Ceylon, National Savings Bank, DFCC Bank all issued last year.

As a standalone credit, however, unrated SriLankan Airlines does not stand as the strongest candidate to ...

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