Triple demand prompts Govt. to borrow $ 165 m via bonds

The issue of Sri Lanka Development Bonds (SLDBs) for $ 50 million has been oversubscribed with a total bid received amounting to $ 172.5 million, the Central Bank said on Monday.

The Central Bank has accepted $ 110 million in 15-month bonds after receiving bids worth $ 113.25 million at a floating rate of weighted average margin over six month LIBOR of 342.99 basis points.

The two-year bonds received bids amounting to $ 59.25 million and the Government accepted $ 55.25 million at a floating rate of 365.36 basis points.

The Central Bank, on behalf of the Government, offered to issue $ 50 million in a 15 months and two years tenure to eligible foreign and local investors for subscription at a rate of $ 6 month LIBOR plus a margin to be determined through competitive bidding. The issue was open for subscription from 21-27 July.

The bonds have a settlement date of 3 August 2015.