Sri Lanka government raises US $ 175 million dollars

August11 (LBO) – A Sri Lankan government 3-year dollar bond issue had been more than twice oversubscribed allowing the government to raise more money than originally sought. Successful bidders will have to make payments for SLDBs on or before August 18, after a Notice of Acceptance of Application issued by the Central Bank. Investors flocked to pick up an offer of 150 million dollars in Sri Lankan development bonds, with over 322 million dollars in bids coming in, when the offer closed Friday, the public debt department of the Central Bank said.

The 3-year bonds opened for subscription earlier in August priced at 6-month London Interbank Offered Rate (LIBOR) plus a margin determined through competitive bidding.

The government has decided to accept 175 million dollars of the bonds at a weighted average rate of 138.3 basis points above LIBOR.

A previous 50 million dollar 3-year bond issue in June was sold at the rate of 6 month LIBOR plus a weighted average of 140 basis points.

Market participants were expecting the government to accept higher than the advertised volume after a similar experience in June.

Individuals and companies with accounts in the non-resident foreign currency banking units of Sri Lankan banks can buy the Sri Lanka Development Bonds (SLDB) from designated agents appointed by the Central Bank.