Development Bonds Oversubscribed

The Central Bank of Sri Lanka, on behalf of the Government, offered to issue Sri Lanka Development Bonds (SLDBs) to eligible investor categories for subscription at a rate of US Dollar 6 month LIBOR plus a margin to be determined through competitive bidding.

The Bonds on offer amounted to US Dollar 70 million for a 2 year maturity period.

The offer was opened on September 8 and closed on September 15. The offer was subscribed by both foreign and local commercial banks, with the total bids received amounting to US$ 75 million.

Of such bids, the Government has decided to accept US$ 60 million of two year SLDBs at the market determined rate of US$ 6 months LIBOR + 2.895 per cent (weighted average margin). Today, the US Dollar 6 month LIBOR rate is 3.0894 per cent.