Sri Lanka Development Bonds oversubscribed
Sri Lanka Development Bonds (SLDBs) issued by the Central Bank to
raise US$ 60 million was oversubscribed by 3.1 times and analysts said
that it demonstrates the confidence investors have the stability of the
Sri Lankan economy.
SLDBs of three-year tenor were offered to eligible investors for
subscription at six-month LIBOR plus a margin to be determined through
The offer was open from March 3—10 for bidding with settlement on
March 17, 2014. Foreign and local commercial banks operating in Sri
Lanka subscribed at the auction.
Bids received amounted to US $ 187 million. Considering the high
demand for SLDBs and providing an opportunity for investors to invest
their funds for a longer period, it was decided to accept the entirety
of US $ 187 million at the market determined rate of six-month LIBOR
plus a weighted average margin of 400 bps.The six-month LIBOR rate as at
March 10, 2014 was quoted at 0.3318 percent.
The SLDBs are transferable by endorsement, delivery and registration
with the Superintendent of Public Debt of the Central Bank. Eligible
investors could purchase SLDBs in the secondary market through
designated agents appointed by the Central Bank.