SL’s latest development bond issue raises $79.86 mln

The issue of Sri Lanka development bonds amounting to US$100 million has been concluded with $82.86 million of bids received from investors today (Tuesday), the Central Bank (CB) announced.
 
The bank received $55.9 million bids for the 1 year 8 months bond and accepted $54.4 million worth bids at a weighted average fixed rate of 5 per cent.
 
It has accepted $25.46 million from $.26.96 million worth bids received for the 3 years 8 months bond at a weighted average fixed rate of 5.75 per cent.
 
The offer of the development bonds denominated in US dollars was opened from September 5 to 11 for bidding with the settlement on September 17.
 
The funds are to meet development spending, roll over existing debt and pay interest, CB sources said. 

The cabinet approved issuing $3 billion (about Rs. 456 billion) worth of Sri Lanka development bonds and to borrow up to another $2 billion by issuing International Sovereign Bonds.

The government will go early to the market this year with the issue of International Sovereign Bonds and not wait till mid-year like in 2017, a senior CB official said.

This year, there are no maturing sovereign bonds while about $2.5 billion of SLDBs will mature this year, leaving room to raise another $500 million, he said. 

The government has to pay $600 million in interest on dollar bonds this year. (Bandula)