CB rejects all bids for $ 250 m SLDB issue

The Central Bank yesterday rejected all bids received for the latest issuance of Sri Lanka Development Bonds (SLDBs) worth $ 250 million.

The issue was for fixed or floating rates at 6 month LIBOR with margins to be determined through competitive bids. Tenors ranged from 1 year 7 months, to 4 years.

The issue received $ 198.59 million worth of bids on the 1 year 7 month tenor option at the floating rate and $ 12.2 million on the 2 years 7 months floating rate option as well as 2.4 million bids on 4 years fixed and floating rates.

However the Central Bank decided to reject all bids. 

In the previous SLDB issue worth $ 200 million, bids worth $  516.24 million were made and the Central Bank accepted  $ 250.04 million. In the early June issue, tenors were 1-year, 2 years, 3 years and 5 years. 

The one year tenor received the bulk of the bids - $ 435.55 million on floating rate and $ 1.36 million at fixed rate. Of that amount, the Central Bank accepted $ 250.04 million. The Weighted Average Margin (bps) over 6-month LIBOR was 438.01. The USD six-month LIBOR was at 0.94415% on 10 June.

Among bids received were $ 67.33 million for a floating 2 year tenor, $ 4.77 million for a floating 3 year tenor and $ 6.18 million for a 5 year tenor.