$ 750 m SLDB issue goes undersubscribed; CB accepts $ 652 m of bids

• Issuance window kept open till 30 April for unsubscribed amounts of the amount offered on a first-come-first-serve basis

The $ 750 million issue of multi-tenor Sri Lanka Development Bonds (SLDBs) went undersubscribed by 12% as the Central Bank accepted bids worth $ 652.6 million.

At the SLDB auction concluded yesterday bids worth $ 659.78 million were received reflecting an under subscription of around $ 90 million.  However the Central Bank said an issuance window for SLDBs will be opened with the announcement of the auction results until the close of business of day prior to settlement (i.e. until 12 p.m. on 30 April 2021) at the Weighted Average Fixed Rates determined for respective maturities at the auction, up to the balance of the amount offered at first come first served basis.The largest bids of $ 200.03 million came for the three-year fixed rate instrument, and its entirety was accepted at a Weighted Average Fixed Rate of 7.95%.

The One year and three months tenor SLDB drew $ 156.97 million worth of bids of which $ 151.97 million were accepted at a Weighted Average Fixed Rate of 7.59%.

The 9-month tenor SLBDs drew bids worth $ 152.10 million of which $ 150 million were accepted at 7.40%. Separately, all the bids worth $ 150.15 million received for the 2-year instrument were accepted at 7.75%.

The three years and nine-month SLDB saw $ 0.53 million worth of bids received of which $ 0.48 million were accepted at 6.99%.

The largest SLDB issue in recent years was open for subscription by foreign citizens and entities, non-resident Sri Lankans, dual citizens, holders of personal foreign currency accounts and business foreign currency accounts, licenced specialised banks and finance companies who have been permitted to accept deposits in foreign currency, authorised dealers in foreign exchange, primary dealers in Government securities, specified companies that have entered into agreements with the Board of Investment and specified licensed insurance companies.

The previous SLDB issue of one to four year tenor was for $ 200 million in mid-January this year and it was heavily undersubscribed with bids worth only $ 62.64 million received.