Posted on January 19, 2018 | Bills & Bonds, Featured
Jan 19, 2018 (LBO) – The issue of Sri Lanka development bonds amounting to 500 million US dollars has been oversubscribed with close to 527 million US dollars of bids received from investors.
The Central Bank has received 129.27 million dollars of bids for the two year bond and the bank has accepted 93.15 million at a floating rate of six month LIBOR plus 305.39 basis points.
The bank has also received 127.59 million dollars of bids for the three year bond and the bank has accepted 114.59 million at a floating rate of six month LIBOR plus 365.18 basis points.
117.66 million dollars of bids has been received for the four year bond and the bank has accepted 113.66 million at a floating rate of six month LIBOR plus 378.13 basis points.
The Central Bank has received 152.22 million dollars of bids for the five year bond and the bank has accepted 149.17 million at a floating rate of six month LIBOR plus 404.81 basis points.
The issue was open for subscription from 11 to 18 January 2018. It has a settlement date of 22 January 2018.
Development bonds or the treasury bonds denominated in US dollars are issued by the Public Debt Department of the Central Bank and subject to the applicable tax laws in Sri Lanka.
Selected Licensed Commercial Banks & Primary Dealers are the designated agents to purchase these bonds.
Earlier this month, Sri Lanka’s cabinet of ministers granted approval to raise up to 3 billion US dollars from development bonds in this year for loan repayments and financing of development projects.