Sri Lanka raises US$105 mn in dollar bonds

Standing left to right – Mr. Dinesh Jebamani (Chief Manager Liability Product Management and New Age Media – Seylan Bank), Mr.Sudesh Peiris (Senior Manager – Digital Banking Channels – Seylan Bank), Ms. S.Senevirathne (Representative of the Revenue Department – Western Province), Mr. Tilan Wijeyesekera (Deputy General Manager – Retail Banking – Seylan Bank) and Mr. Malik Wickremanayaka (Deputy General Manager – Operations – Seylan Bank)

September 12, 2006 (LBO) – Sri Lanka Tuesday raised 105 million dollars through a bond issue aimed at the domestic market. The Sri Lanka Development Bonds carries tenures of two and three years and the Central Bank said the issue was oversubscribed when the issue closed this evening.

The bank accepted 70 million dollars in two-year bonds, which was priced at 144.06 basis points over the six months London Interbank offered rate or LIBOR.

The bank also accepted 35 million dollars worth of three-year bonds, priced at a premium of 157.73 basis points over the LIBOR rate.

Six months LIBOR is now trading at 5.42 percent.

“Proceeds from the bond issue will be put to build roads, power projects, port development, health and education sector,” Central Bank governor Nivard Cabraal said.

In August, the bank raised 175 million dollars via three-year bond issue priced at 138.3 basis points over the six months LIBOR.

A similar 50 million dollar 3-year bond issued in June was sold at the rate of 140 basis points over the six months LIBOR rate. .