Sri Lanka Sells $192mn Dollar Bonds mainly to Local Investors 375 & 385 Basis Points above 6 Month LIBOR

08th March 2011, www.lankabusinessonline.com

Sri Lanka has sold 192 million US dollars in three and four year dollar denominated bonds mainly targeting local investors, rolling over existing maturing debt issued at much higher rates.

The Central Bank's public debt department said it had received bids of 204.25 million US dollars.

It had accepted bids of 99 million US dollars for 3-year bonds at a weighted average yield of 375 basis points above the 6 month London interbank offered rate (LIBOR) and 93 million dollars for 4-year bonds at LIBOR plus 385 basis points.

US Dollar 6 month LIBOR rate is 0.46 percent on Tuesday, the debt office said.

In March 2009 in the midst of a balance of payments crisis, Sri Lanka had to pay 540 basis points above the London rate to the holders of 184.25 million in maturing 2-year paper.

The debt office said bids came from both local and foreign banks.

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