Thursday Nov 14, 2024
Thursday Nov 14, 2024
Wednesday, 20 March 2013 01:47 - - {{hitsCtrl.values.hits}}
The Central Bank on behalf of the Government yesterday took up the entire bids worth $ 129 million made for the $ 50 million three year Sri Lanka Development Bonds (SLDB) issue.
The Central Bank said foreign and local commercial banks operating in Sri Lanka subscribed at the auction and the offer was oversubscribed by 2.6 times, with total bids received amounting to $ 129 million at the market determined rate of USD 6 month LIBOR + 400 bps (weighted average margin, which is the same margin as at the last auction held on 15 February 2013).
“Accordingly, with the intention of providing an opportunity for investors to invest their funds for a longer period, it was decided to accept the entirety of $ 129 million in three-year maturity at the above rate, where as of today, the US Dollar 6 month LIBOR rate is 0.4454%,” the Central Bank said.
The offer was opened from 12-19 March 2013 for bidding with the settlement on 27 March 2013.
The SLDB of $ 50 million in three-year tenure were offered to eligible investors for subscription at a rate of US Dollar 6 month LIBOR plus a margin to be determined through competitive bidding.
The SLDB issue was executed in terms of Section 2 (a) and 2 (c) of the Foreign Loans Act No. 29 of 1957 as amended.
The SLDBs are transferable by endorsement, delivery and registration with the Superintendent of Public Debt of the Central Bank of Sri Lanka. Eligible investors may purchase SLDBs in the secondary market through Designated Agents appointed by the Central Bank of Sri Lanka.
