Govt. raises $ 327 m more via Development Bonds

Friday, 26 June 2015 01:13 - - {{hitsCtrl.values.hits}}

The Government has yesterday raised a further $ 327 million via Sri Lanka Development Bonds of different tenures but at floating rates.

For $ 100 million SLDBs on offer, the Central Bank said $ 255 million worth of bids out of $ 262 million received on SLDBs of one year and 10 months tenure was accepted at 340.12 Weighted Average Margin (bps) over six month LIBOR.

Additionally, $ 37 million of five-year SLDBs at 410.95 basis points over a six-month LIBOR and $ 35 million via three years and seven months tenure at 376.43 basis points over six month LIBOR. On the latter, the quantum was the total bids received whilst five-year tenure bids amounted to $ 60 million.

In May, the Government successfully raised $ 988 million via a 10-Year Sovereign Bond ($ 650 million) and SLDBs.

The bond, which was issued with a comparatively low yield of 6.125% per annum and a maturity of 10 years, attracted an order book of over three times. Furthermore, the $ 100 million SLDB issue attracted an order book of nearly four times of which US dollars 338 million was accepted.

The Central Bank said the oversubscriptions of issues in May reflected continued investor confidence in Sri Lanka’s economy.