Latest SLDB issue of $ 100 m gets undersubscribed

The latest issuance of Sri Lanka Development Bonds (SLDBs) worth $ 100 million went undersubscribed. 

During the auction week ending 20 January, only bids to the value of $ 86 million had been received. Of that CBSL accepted only bids worth $ 11.35 million. The SLDBs offered fixed rate determined through competitive bidding for all maturities. CBSL indicated a possible upsizing by an additional 1.5 times. 

SLDB of five months tenor received highest bids worth $ 60.81 million of which only $ 0.16 million were accepted at a Weighted Average Fixed rate (WAFR) of 7.70%. The one year and two months SLDB saw bids worth $ 21.63 million received and only $ 10.62 million accepted at WAFR of 8%. The nine-month tenor SLDBs drew bids worth $ 3.53 million of which $ 0.52 million was accepted at 7.86%. The two years and three months tenor SLDB received bids worth $ 0.05 million and accepted at 8%. There were no bids for four year six months tenor of SLDBs.

An issuance window for SLDBs was kept opened with the announcement of the auction results

until close of business of the day prior to settlement (by 3 p.m. yesterday) at the WAFR determined for respective maturities at the auction, up to the limit specified for possible upsizing, at a first-come, first-served basis.