Sri Lanka development bond issue oversubscribed, 4 year bids rejected

June 25, 2018 (LBO) – The issue of Sri Lanka development bonds amounting to 700 million US dollars have been oversubscribed with 937 million dollars of bids received from investors.

The central bank received 829.60 million bids for the 2 years 10 months bond and accepted 693.89 million dollars worth bids at a weighted average fixed rate of 5.25 percent.

The central bank accepted only 6.11 million from the 44.11 million worth bids received for the 3 years 10 months bond at a weighted average fixed rate of 5.52 percent.

The bank rejected 63.21 million dollars of bids received for the 4 years 10 months bond offered.

The central bank has the authority to accept any amount not exceeding the total amount offered at auction depending on the market conditions.

The offer or the Treasury bonds denominated in US dollars was opened from 19 to 25 June for bidding with the settlement on 02 July 2018.