Leading News from Sri Lanka::
Sri Lanka Central Bank's US$ 100 million bond offer oversubscribed
Thu, Mar 18, 2010, 11:33 pm SL Time, ColomboPage News Desk, Sri Lanka.
Mar 18, Colombo: Sri Lanka Central Bank said US$ 100 million Sri Lanka Development Bonds (SLDBs) offer issued on March 12th was oversubscribed by 34 percent.
The offer was oversubscribed 1.34 times by both foreign and local commercial banks, with the total bids received amounting to US$ 134 million.
The government has decided to accept US$ 55 million of 3 year bonds with US Dollar 6 month LIBOR + 395 bps and US$ 37 million of 2 year bonds at LIBOR + 380 bps.
This bond issue is within the borrowing limit approved under the Vote on Account by Parliament for 2010 and the funds mobilized through the new bond issuance is to be used for development activities carried out by the government, the Central Bank said.
Eligible investors can purchase SLDBs from Designated Agents appointed by the Central Bank of Sri Lanka in the secondary market. The bonds are transferable by endorsement, delivery and registration with the Superintendent of the Public Debt of the Central Bank of Sri Lanka.