The Republic of Maldives has braved the low pricing
environment by making its first foray into the global sovereign
bond market, setting at the same time a new benchmark for the
adoption of collective action clauses (CACs).
The South Asian island nation tested overseas
investors’ appetite by issuing a set of $200
million five-year Reg S-eligible notes on a seven percent
coupon listed on the Singapore Exchange (SGX), which twice
oversubscribed. But, according to
Amit Singh, partner at Allen & Overy in Hong Kong, it
also broke a decade-long tradition seen in previous sovereign
bond offerings in Asia.
"This was the first time CACs for New York law-governed
notes were used in a sovereign bond offering out of
Asia-Pacific," he said.
Sovereigns of frontier jurisdictions, such as Mongolia, Fiji
and Sri Lanka, have been tapping the international bond market.
Mongolia made its debut in November 2012 with...