The latest offer of US$ 200 million worth of Sri Lanka Development Bonds (SLDBs) issued by the government to fund state expenditure has been oversubscribed by over 150 percent, the Central Bank said this week.

The Bank, the issuer of these bonds on behalf of the government, said the offer drew a total subscription of $310 million from local and foreign commercial banks. “The government has decided to accept $230.3 million (more than the offered amount) of the two year SLDBs at the market determined rate of US Dollar 6-month LIBOR + 2.9492 per cent (weighted average margin),” the statement said adding that the current USD 6-month LIBOR rate is 3.180 percent.

The offer was opened on June 16 and closed on June 23.These funds would be utilized to settle the SLDBs that are maturing this year. The government, through the Central Bank, has resorted to a variety of commercial borrowings over the past several months to finance government expenditure.

The Bank said the latest offer was in the form of 2-year maturity bonds worth $125 million, 3-yea maturity bonds worth $50 million and 5-year maturity bonds worth $25 million.