Sri Lanka Bank of Ceylon sells 5-year 19-pct bonds

Oct 16, 2008 (LBO) – Sri Lanka’s state run Bank of Ceylon is selling three billion rupees worth 5-year 19 percent stock exchange listed bonds, with options of floating interest and interest at maturity also offered, officials said.

The bank also offered a 30 million US dollar bond to the market last month. The bank could increase the volume up to five billion rupees if the issue is oversubscribed, chief financial officer Saliya Rajakaruna said.

The floating rate debenture is priced at Treasury bill plus 0.75 percent. A zero coupon debenture would also be sold with interest to be paid at maturity.

Officials said two billion rupees raised from the debenture would be used to boost the capital of the London branch.

The rest would be used in Sri Lanka.