Development Bonds issue oversubscribed to over $ 294 m

The issue of Sri Lanka Development Bonds (SLDBs) for $ 75 million has been oversubscribed with total bids received amounting to $ 294.15 million, the Central Bank said on Friday.

The Central Bank on behalf of the government offered to issue of $ 75 million 1 Year 1 month, 2 Years 2 months and 4 Years 4 months tenor to eligible investors for subscription at a rate of either US Dollar 6 month LIBOR plus a margin (floating rate) or at a fixed rate to be determined through competitive bidding.

The issue was open for subscription from 15-19 February.

The Central Bank has accepted $ 247.15 million in 1 year bonds after receiving bids worth $ 290.5 million at a floating rate of weighted average margin over six month LIBOR of 388.83 basis points.

The 2 years 2 months bonds received bids amounting to $ 52.0 million and accepted $ 47.0 million at a floating rate of 424.79 basis points.

The bonds have a settlement date of February 26, 2016.