CITICORP Sells Rs1bn UDA Debentures to BOC in a Land Mark Deal

25th February 2011, www.news360.lk, By Prasanna C Rodrigo

CITICORP Investment Bank of Singapore has sold Rs. 1 billion out of the Rs. 3 billion worth debentures it purchased from the UDA debenture issue to the Bank of Ceylon.

The transaction which took place on Friday has been conducted via the secondary market.

The DGM, Investment of the Bank of Ceylon P.A. Lionel said the debentures were bought at a yield of 10.80%.

He added “Both parties benefited from this deal”.

When asked why CITICORP sold the debentures, Lionel said “They would have wanted to test the market” Lionel remarked “This is a land mark deal”.

According to him this is the first time that such a big transaction has taken place in the local secondary debenture market.

He was confident that this will send a message to the international investors about Sri Lanka and will help activate the secondary market for debentures here in the country.

“We wanted to show that their debenture investments can be realized at any given time” revealed Lionel.

CITICORP purchased Rs. 3 billion worth of debentures when the Urban Development Authority issued Rs. 10 billion worth of debentures during last year.

Related Info :

• CITICORP Singapore Buys Entire Allocation for Foreigners in UDA Debentures