The latest Sri Lanka Development Bonds (SLDBs) issue worth $ 75 million has gone undersubscribed once again.
The original offered amount was $ 75 million with a possible upsizing by an equal amount making the full offer worth $ 150 million.
However, the auction saw only bids worth $ 61 million received. Of that, bids worth $ 56 million were accepted at a weighted average fixed rate ranging from a low of 7.82% (for tenors of nine months and three years and five months) and a high of 8% (for a four-year-eleven-month tenor).
The nine months tenor attracted most bids worth $ 54.41 million of which $ 49.41 million were accepted. The one-year-seven-month tenor attracted bids worth $ 5.27 million, of which almost the entirety was accepted at 7.83%.
Central Bank said an issuance window for SLDBs will be opened with the announcement of the auction results until close of business of day prior to settlement (i.e., preferably by 3:00 p.m. on 13 August) at the Weighted Average Fixed Rates determined for respective maturities at the auction, up to the limit specified for possible upsizing, at first-come-first-served basis.
The previous issue of SLDBs in late July was for $ 30 million with a possible upsizing by another $ 80 million making the total to $ 110 million. The Central Bank accepted the entirety of the $ 58.6 million worth of bids received.
In that auction, most bids ($ 48 million) were for the short-term nine-month SLDBs at a weighted average fixed rate of 7.69%. The one-year-eight-month tenor received bids worth $ 4.51 million at 7.67%, the five-year tenor received $ 4.96 million at 7.60%, while the two-year-nine-month tenor received $ 1.06 million bids at 7.98%.
From an initial amount perspective, the SLDB issue was oversubscribed unlike in the previous two offerings. However, at maximum potential value, the July issue went unsubscribed.
For July’s SLDBs issue also, the Central Bank kept an issuance window open for the remainder of the amount on offer.
The June SLDBs issuance aimed at raising $ 100 million drew bids amounting to 35%, whilst the April issue worth $ 750 million too went undersubscribed by 12%. Of the bids received, CBSL accepted those worth $ 652.6 million, and the balance was raised through direct issuance.