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| Saturday, 14 August 2004 |
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Bond issue raises $50m by Shirajiv Sirimane The Central Bank of Sri Lanka (CBSL) successfully completed raising a US 50 million dollar development bond (SLBDs) issue yesterday. This is the second time that the Central Bank raised a bond issue. The Bank had earlier raised US 144 million US dollars. According to an official of the Central Bank these bonds are to fulfil the government borrowing needs to meet its financial requirements. He said that this would be a replacement for foreign loans the government had intended in taking. "Since the bond issue is successful the government would now refrain from burdening on the domestic market, for additional loans," he said. Had the government opted to borrow from the domestic mark it would have had an negative impact on the interest rates. The development bonds which were opened for subscription from August 9 to August 12 was headline over subscribed with bids amounting to US 123.9 million being received. The offer was open for subscription at 6 month LIBOR + margin trough competitive bidding. At the tender board meeting it was decided to accept US dollars 50 million for maturity period of two years at 6 months LIBOR + 19.51 basis points per annum with interest payable semi annually. Eligible investors can purchase SLDBs from designated agents appointed by the CBSL to market the SLDBs. |
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