Sri Lanka sells US$121mn in 3-year bonds

Sept 17, 2012 (LBO) – Sri Lanka has sold US121.05 million US dollars of 3-year bonds at a weighted average yield of 400 basis points above the 6-month London Interbank Offered Rate, the state debt office said. Sri Lanka offered 60 million US dollars of bonds for sale but 121.05 million in bids were received, from foreign and local commercial banks operating in Sri Lanka the debt office said.

The 6-month Libor rate was 0.67 percent today. The debt office said the last 3-year bond sale on June 2012 was at 410 basis points above Libor.

Dollar denominated bonds sold to mainly resident investors have become an important source of finance for the state.