Monday Apr 29, 2024
Monday Apr 29, 2024
Monday, 28 January 2019 02:07 - - {{hitsCtrl.values.hits}}
The first-ever Sri Lanka Development Bonds (SLDBs) issue for 2019 worth $ 200 million went undersubscribed last week.
When the issue closed, only bids amounting to $ 181.73 million were received.
The offer included a mix of 1 year 6 months, 2 years 6 months, 3 years 3 months and 4 years 3 months tenor at fixed rate (determined through competitive bidding) and floating rate (6 month LIBOR or its successor for US Dollar + margin through competitive bidding).
Largest bids ($129.55 million) were received for the short-term 1 year six months option. Of that bids for floating rate option was $ 105.50 million, of which $ 103.50 million were accepted at 3.42 weight average margin (%) over 6-month LIBOR. Central Bank also accepted $ 24.05 m bids on fixed rate of 5.82%.
Four year 3 months floating rate option got the second highest bids ($ 21.65 million), all of which were accepted at 3.89.
Bids received on 2 year 6 months – $16.53 million floating at 3.33% and $ 0.60 million fixed rate at 5.75% – wereaccepted as well along with $ 13 million floating 3 years 3 months at 3.51% and $ 0.40 million fixed rate at 3.33% being accepted.
The last SLDB of 2018 worth $ 100 million in September too got undersubscribed with bids received being $ 82.86 million. Of that Central Bank accepted $ 54.40 million bids for 1 year 8 months tenor at fixed rate of 5% and $ 25.46 million on 3 years 8 months tenor at fixed rate of 5.75%. There were no bids for 4 years 8 months tenor.
