Thursday Nov 14, 2024
Thursday Nov 14, 2024
Tuesday, 31 March 2020 01:40 - - {{hitsCtrl.values.hits}}
The issue had multiple tenors – seven months, one year and four months, three years and four years and 10 months. Rates offered were – Floating rate arrangement only for seven-month, one year and four month and three-year maturities: six-month LIBOR or its successor for dollar + margin through competitive bidding. Fixed rate arrangements were for seven-month, one year and four month, three year and four year and 10 month maturities: Fixed rate determined through competitive bidding.
SLDBs issue was open from 26 March and when it closed yesterday, highest bids were for one year and four months fixed tenor with $ 13.65 million of which $ 9.83 million were accepted with a Weighted Average Fixed Rate of 6.29%.
The three years fixed rate instrument drew $ 3.8 million worth of bids but rejected. Same fate for $ 2.8 million bids received for seven-month fixed tenor. The four years and 10 months fixed rate instrument attracted $ 2.10 million worth of bids and the entirety was accepted with a Weighted Average Fixed Rate of 6.50%.
Analysts said the undersubscription, largely on account of uncertainty arising from COVID-19 pandemic, was a setback. “Investors, both foreign and local, have moved away from taking long-term risks and perhaps for the first time the very poor appetite for SLDBs is unprecedented,” they opined.
