SLDBs draw $ 516m bids; CB goes for $ 250 m of 1 year tenor at floating rate

The latest issue of Sri Lanka Development Bonds (SLDBs) worth $ 200 million saw bids worth $ 516.24 million but the Central Bank opted to accept only $ 250.04 million.

The Central Bank on behalf of the government has offered to issue of US$ 200 million in 1-year, 2 years, 3 years and 5 years tenor to eligible investors for subscription at a fixed or floating rate of US Dollar six month LIBOR plus a margin to be determined through competitive bidding.

The one year tenor received the bulk of the bids - $ 435.55 million on floating rate and $ 1.36 million at fixed rate. Of that amount, the Central Bank accepted $ 250.04 million. The Weighted Average Margin (bps) over 6-month LIBOR was 438.01.

The USD six-month LIBOR on Friday (10 June) was at 0.94415%.

Among bids received were $ 67.33 million for floating 2 year tenor, $ 4.77 million floating 3 year tenor and $ 6.18 million five year tenor.

Both foreign and local commercial banks subscribed bids at the auction that was opened from June 07- 13 for bidding. The bonds have a settlement date on 30 June.