Sri Lanka Development Bond Issue for USD 100mn a Success

27th March 2010, www.dailynews.lk

In response to the SLDBs offer which amounted to US$ 50 million with two year maturity and US$ 50 million with three year maturity both foreign and local commercial banks invested US$ 100 million and the settlement for the issue took place on March 26, 2010.

US$ 92 million was raised through the auction held on March 18, 2010 and the balance US$ 8 million was mobilized via placements.

The total issue of this SLDBs amounted to US$ 45 million of two year bonds and US$ 55 million of three year bonds at the rates of US dollar six month LIBOR + 380 basis points and US dollar six month LIBOR + 395 basis points. The successful conclusion of this first SLDBs issue in 2010 is considered a positive start which reflects investors’ confidence and their preference to invest funds in foreign currency denominated bonds issued by the Government.