Investment in Treasury Bills and Treasury Bonds by Japanese Investors
In view of the benign macro-economic environment, relatively high interest rates, safe and conductive market environment, Bansai Securities, one of the leading investment house in Tokyo, is planning to invest JPY 10 billion [Approximately US$ 125 million] in Sri Lanka Government Treasury Bills [T-bills] and Treasury Bonds [T-bonds] over the next 12 month period. The first tranche of the proposed investment of JPY 1.5 billion [Approximately US$ 20 million] is expected to be made before 15.07.2012.
The New World Securities [Pvt] Limited, the first Japanese Securities firm authorized to trade in shares and financial instrument in Sri Lanka, acts as the lead manager while Pan Asia Banking Corporation PLC will be the facilitator to the proposed investment.
The Embassy of Sri Lanka in Tokyo has played an active role in securing the proposed investment. It has conducted several high-net worth investor awareness programmes with the help of the New World Securities [Pvt.] Limited. Proposed investment is expected to popularise T-bills and T-bonds among Japanese investors.
The comparatively attractive yield rates and the simplest procedure to be followed in channelling the investment have made T-bills and T-bonds increasingly popular amongst foreign investors. Any foreign investor could invest money in T-bills and T-bonds and take out the money as and when required to do so without restrictions. Current yield rates on T-bills range from 11 per cent [three-month] to 12.78 [one-year], whereas T-bond yields range from 13.00 per cent [two-year] to 14.50 per cent [15-year].