Home »Money and Banking » World » Sri Lanka asks Citigroup to handle $100 million loan

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  • Nov 8th, 2005
  • Comments Off on Sri Lanka asks Citigroup to handle $100 million loan
Sri Lanka is seeking a loan of 100 million dollars to finance urgent infrastructure projects, financial sources said Monday. The government has chosen Citigroup of the United States to arrange the loan and raise the cash within six to eight weeks, the sources said.

Sri Lanka had sought similar commercial loans in 1997 and 2003, raising a total of 150 million dollars. Citigroup is currently helping the government secure its first sovereign rating as the country looks to international debt markets to raise capital and attract investments. Three international rating agencies - Fitch Inc, Moody's Investor Services and Standard and Poor's - have been mandated for the job.

The trio are expected to finish their work this month and the government hopes to use the credit rating to raise dollar bonds in the international market next year. Sri Lanka's rupee appreciated by about five percent this year following the inflow of foreign aid for last year's tsunami survivors, but a higher oil import bill has begun to put pressure on the exchange rate.

Copyright Agence France-Presse, 2005


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