Sri Lanka big investors get lion’s share of urban bond

Oct 05, 2010 (LBO) – Sri Lanka’s Urban Development Authority has allocated the bulk of a 10 billion rupee bond issue to larger investors to applied for more than 10 million rupees each, a statement said. Resident investors who applied for up to 10 million rupees will be allotted in full being given a total of 53.2 million rupees, the statement to the stock exchange said.

Investors who applied for more than 10 million rupees will be allotted on a pro rata or proportionate basis being given a total of 6.9 billion rupees worth of bonds.

Foreign investors who were allowed to invest for up to 30 percent of the issue or three billion rupees will be allotted on a first come first served basis, the UDA said.

The UDA bond was oversubscribed within days.

The UDA is to use the money to relocate squatters occupying prime urban land owned by the state which will then be leased to private sector developers.