CB to raise $ 100 m more via development bonds

The Central Bank has announced that it plans to sell $ 100 million worth of development bonds to foreign and local investors.

The Public Debt Department of the Central Bank will issue $ 100 million in Sri Lanka development bonds of one year and seven months and two years and five months tenors to eligible investors for subscription at a rate of either $ 6 month LIBOR plus a margin determined through competitive bidding (floating rate) or at a fixed rate to be determined through competitive bidding.

Minimum investment is $ 100,000 with additional investments in multiples of $ 10,000. The bonds are exempted from income tax paid in Sri Lanka.

The issue will be open for subscription from 6 to 13 August and has a date of settlement of 18 August.

Late last month the Government raised $ 165 million via the July SLDB $ 100 m issuance, which drew bids worth $ 172.5 million.