CSE Introduces High-Yield Bonds for Lower-Rated Companies

Eligible companies include those regulated by the Central Bank of Sri Lanka and the Insurance Regulatory Commission, such as banks, non-banking financial institutions, and insurance companies. This ensures that only regulated entities can issue these bonds, maintaining a level of oversight and stability in the market.

Although the High-Yield Bonds will be listed on the CSE, trading will occur on the Over-the-Counter (OTC) Platform and will be restricted to "qualified investors." These investors, akin to those involved in Basel III-compliant securities, are typically more adept at managing risks and can diversify their portfolios with bonds offering higher potential returns, albeit with increased risk.

This initiative marks a pivotal step in enhancing liquidity and providing alternative financing options for companies seeking to navigate the challenges of capital acquisition. Investors are encouraged to consider these new opportunities as the CSE aims to broaden its market offerings and foster economic growth.