Mar 19, Colombo: The issue of Sri Lanka Development Bonds (SLDBs) for US$ 50 million has been oversubscribed by 2.6 times with total bid received amounting to US$ 129 million the Central Bank said on Tuesday.

The Central Bank on behalf of the government has offered to issue of US$ 50 million in 3-year tenor to eligible investors for subscription at a rate of US$ 6 month LIBOR plus a margin to be determined through competitive bidding.

Both foreign and local commercial banks have subscribed bids at the auction that was opened from March 12 - 19 for bidding. The bonds have a settlement date on March 27.

Due to the high demand from the investors, the government has decided to accept US$ 129 million in 3 year maturity at the market determined rates of US Dollar 6 month LIBOR + 400 bps (weighted average margin, the Bank said in a statement.

According to the Central Bank, six-month LIBOR on Friday was at 0.4454 percent.