Wednesday Dec 25, 2024
Wednesday Dec 25, 2024
Tuesday, 15 March 2022 04:09 - - {{hitsCtrl.values.hits}}
The Central Bank yesterday raised $ 152.54 million via the issuance of six-month Sri Lanka Development Bonds (SLDBs).
The SLDB auction was for $ 50 million at fixed rate with a possible upsizing by an additional three times based on favourable market response.
The six month tenor of SLDBs received bids worth $ 162.54 million of which CBSL accepted $ 152.54 million at the Weighted Average Fixed Rate of 9.48%. In the January, auction five months tenor rate was 7.70%.
The one year instrument received bids worth only $ 2.50 million and the rest of the tenor (One year 10 months, two years 10 months and four years nine months) didn’t receive any bids.
CBSL said an issuance window for SLDBs will be opened with the announcement of the auction results until close of business of the business day prior to settlement (i.e., preferably by 3 p.m. on 16.03.2022) at the Weighted Average Fixed Rate determined for the respective maturity at the auction, up to the limit specified for possible upsizing, at first come first served basis.
This is the most successful SLDB auction in recent times with previous exercises going under-subscribed significantly. In February CBSL said it raised $ 111.5 million through direct issuance of SLDBs.
“Validating the effectiveness of the measures introduced, funds amounting to $ 111.5 million have been raised through direct issuance of SLDBs from 1 January to 15 February,” CBSL said in a statement.
It said the investments in SLDBs during this period were spread across maturities ranging from three months to five years, attracting large volume as well as small ticket eligible
investors.
“In collaboration with certain Sri Lankan Missions, the CBSL has also made contact with eligible investors in those jurisdictions to further popularise investments in SLDBs,” the statement added.
Direct placement was after the January SLDB auction for $ 100 million went undersubscribed with bids received only to the value of $ 86 million and CBSL accepted only $ 11.35 million of those.
Post completion of the issuance window, CBSL finally raised $ 77.75 million. January SLDB auction and direct issuance saw Weighted Average Fixed Rate of 7.70% for five months tenor; 7.86% for nine months, 8% for one year and two months and two years and three months.
In August last year, via auctions and direct issuance, CBSL raised $ 57.35 million when the original auction offered was $ 75 million reflecting an under-subscription.
