SLDB issue triggers four times the demand

The Government’s latest issuance of Sri Lanka Development Bonds (SLDBs) worth $100 million had drawn bids worth over Rs. 380 million. 

However, the Central Bank accepted only bids worth $47.5 million.

The amount offered was $100 million with two rate options - floating rate arrangement only for 2-year and 3-year maturities: 6 month LIBOR or its successor for US Dollar+ Margin through competitive bidding; or fixed rate arrangement for 2, 3, 4 and 5-year maturities: fixed rate determined through competitive bidding. The 3 year tenor floating window drew highest bids worth $218.34 million, but no bids were accepted by the Central Bank. The two year-floating option drew $ 94.77 million, and no bids were accepted. Of the $30 million bids received for four and five year fixed options, the CB accepted $20 million each at a weighted average fixed rate of 554/75 (four years) and 565.63 (five years) and absorbed all the bids worth $ .56 million for the 2 year fixed option at a weighted average fixed rate of 520.00.