$ 100 m Development Bond draws $ 400 m demand; Govt. accepts $ 338 m

Friday, 29 May 2015 00:07 - - {{hitsCtrl.values.hits}}

The latest issuance of $ 100 million Sri Lanka Development Bond (SLDBs) has been oversubscribed by four times, encouraging the Government to accept $ 338 million of the bids received.

The offer of $ 100 million was at a fixed or floating (six months LIBOR plus margin determined through competitive bids). The tenure was one year and one month (13 months) and two years and 11 months (35 months). The issue was open for subscription from 22 to 28 May. Demand was for floating rate with $ 359 million worth of bids received for 13 months tenure. For the 35 months option bids amounted to $ 36.86 million and the fixed rate on 13 months drew just $ 2 million.

The Government accepted $ 329 million from bids for 13 months floating rate (with weighted average margin (bps) over six month LIBOR at 316.69) and $ 9 million from 35 months at floating rate (with weighted average margin (bps) over six month LIBOR at 353.89).