The issue of Sri Lanka Development Bonds (SLDBs) for US$ 60 million has been oversubscribed by 3.1 times with total bid received amounting to US$ 187 million, the Central Bank said.
The Central Bank, on behalf of the Government, offered to issue SLDBs of US Dollars 60 million in 3 year tenor to eligible investors for subscription at a rate of US Dollar 6 month LIBOR plus a margin to be determined through competitive bidding.
The offer was opened from March 03 – 10, 2014 for bidding with the settlement on March 17, 2014. Foreign and local commercial banks operating in Sri Lanka subscribed at the auction.
Considering the high demand for SLDBs and providing an opportunity for investors to invest their funds for a longer period, it was decided to accept the entirety of US Dollars 187 million in 3 year maturity, the Bank further said.
The SLDB issue was executed in terms of Section 2 (a) and 2 (c) of the Foreign Loans Act No. 29 of 1957 as amended.