Debt Call

The governments US$ 100 mn bond issue opens on Tuesday, to raise funds to bridge the budget deficit.
The Sri Lanka Development Bond issue will carry a minimum two-year tenure and will be linked to the six months London Interbank offered rate or LIBOR.rn

rnInterest rates will be paid semi-annually, with minimum investment of US$ 100,000 and in multiples of US$ 10,000.rn

rnLike previous issues, the dollar denominated debt paper will not carry a rating. rn

rnThe issue, which is part of the governments efforts to raise US$ 250 mn this year, will be limited to foreign citizens/entities and non-resident Sri Lankans.rn

rnSri Lanka successfully raised US$ 250 mn in bonds two years ago, with the bulk of the issue snapped up by local commercial banks.rn

rnThe Bank retired US$ 158.5 mn of the earlier issue, with the remaining US$ 91.5 mn being rolled over on June 28.rn

rnThe present issue is being sold through banks and primary dealers. Dealers are expecting an oversubscription when the issue closes on June 18.rn

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-LBO Newsdesk: LBOEmail@vanguardlanka.comrn