CB announces first SLDB issue for 2016

The Central Bank has announced the first issue of Sri Lanka Development Bonds (SLDBs) for 2016.

The issue is to raise $ 75 million via SLDBs of one, two, three and four years and five months tenures.

Interest rate offered includes floating rate arrangement: six-month LIBOR for US$ plus margin through competitive bidding and fixed rate arrangement determined through competitive bidding.

Bid submissions open from today until 18 January with the date of settlement being 21 January.

The previous SLDB issue was in October for $ 75 million but the Government raised $ 330 million via one, three and three months and four years and eight months tenures. Bids received amounted to $ 407.25 million. The bulk of the bids ($ 343.25 million) were for one year and $ 277.5 million accepted at Weighted Average Margin was six-month LIBOR plus 335.96 and $ 50 million at LIBOR plus 405 on four years and eight months.