Sri Lanka Development Bonds Issuance Oversubscribed

Sri Lanka Development Bonds (SLDBs) of US$50 million has oversubscribed by 4.8 times with total bids received amounting to US$ 239.5 million.

These bonds issued in three-year tenor to eligible investors for subscription at a rate of US$ 6 month LIBOR plus a margin to be determined through competitive bidding. The offer opened from June 16 – 23, 2014 for bidding with the settlement on June 30, 2014. Foreign and local commercial banks operating in Sri Lanka subscribed at the auction.

Considering the high demand at a highly competitive margin for SLDBs and providing an opportunity for investors to invest their funds for a longer period, it was decided to accept the entirety of US$239.5 million in three-year maturity at the market-determined rate of USD 6 month LIBOR plus a weighted average margin of 375 bps. The US Dollar 6 month LIBOR rate as of June 23, 2014 is quoted at 0.3234 per cent.

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