Central Bank completes 1st Sri Lanka Development Bonds issue in 2010

The Central Bank of Sri Lanka, on behalf of the Government, successfully completed the 1st issue of Sri Lanka Development Bonds (SLDBs) in 2010, today. The offer, which amounted to US$ 100 million, was opened on March 12, 2010 and closed on March 26, 2010.

In response to the SLDB’s offered 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. Of this total, US$ 92 million was raised through the auction held on March 18, 2010 and the balance US$ 8 million was mobilised via placements.

Accordingly, 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, respectively.