First post-debt crisis Dollar Bond issue snapped up

Friday, 5 December 2025 06:48 - - {{hitsCtrl.values.hits}}

Govt. raises required $ 50 m from Domestic Dollar Bond issue offered to local banks
Total bids amount to $ 89 m

The Public Debt Management Office (PDMO) of the Finance Ministry completed a $ 50 million borrowing round under a fixed-rate arrangement, recording firm demand for one- and two-year maturities, according to auction results released on Wednesday (3).

This was the first foreign currency Bond issue after the 2022 debt crisis and the first issue managed by a separate entity, the PDMO, and not the Central Bank of Sri Lanka.

The one-year tranche drew $ 45.5 million in bids, of which $ 33 million was accepted at a weighted average fixed rate of 5.7%. The two-year tenure received $ 42.5 million in bids, with $ 17 million accepted at a weighted average rate of 6.1%.

Only $ 1 million in bids was received for the three-year maturity, and no acceptance was made for this tranche.

The Finance Ministry noted that the issuance carries the option of being upsized up to three times depending on funding requirements and market conditions. The auction was conducted from 1-3 December through competitive bidding across all maturities. The settlement date is 10 December 2025.