Central Bank of Sri Lanka raises US$ 165.5 million through Sri Lanka Development Bonds
The Central Bank of Sri Lanka (CBSL) has reportedly raised US$ 165.5 million through the latest issuance of Sri Lanka Development Bonds (SLDBs) from US$ 196 million worth of bids received. The funds raised are for the government of Sri Lanka.
The multi-tenor with fixed and floating interest rate SLDB issuance was for US$ 200 million.
According to reports, the Central Bank had opted for the entirety of bids worth US$ 36.30 million received for two year two months floating rate offering at Weighted Average Margin (%) over six-month LIBOR (Floating) of 3.20%, US$ 36.2 million on two year 11 months floating rate option at Weighted Average Margin (%) over six-month LIBOR (Floating) of 3.48% and US$ 35 million on three year 11 months floating rate offering at Weighted Average Margin (%) over six-month LIBOR (Floating) of 3.93% and US$ 12 million from US$ 13.5 million bids for one year eight months floating rate option at Weighted Average Margin (%) over six-month LIBOR at 3.53%.
Reports further state that the Bank has also accepted US$ 28.3 million out of US$ 43.8 million bids received for two year two months fixed rate option at Weighted Average Fixed Rate of 5.87% and US$ 17.69 million out of US$ 30 million received for one year eight months fixed rate offering at Weighted Average Fixed rate of 5.93%.
OSL take:
The raising of US$ 165.5 million by the Central Bank of Sri Lanka through SLDBs is a positive sign on the availability of funds for the Sri Lankan government’s development agenda. The sale of bonds also shows the growing investor confidence on the Sri Lankan economy. While foreign investors could look at investing in Sri Lankan bonds, other foreign businesses/investors could explore business/investment opportunities in Sri Lanka.
| Article Code : | VBS/AT/27052019/Z_1 |