Sri Lanka to issue US$50mn dollar bonds to local market

Sep 10, 2009 (LBO) – Sri Lanka is selling 3-year bonds for 50 million US dollars in the local market to qualified investors who can hold dollar assets, the government’s debt office said. The bonds will pay interest based on the 6-month London interbank rate (LIBOR). A 35 million US dollars in bonds are maturing this month.

The government is also in the process of choosing lead managers for a 500 million bond sovereign bond.

The dollar denominated ‘Sri Lanka Development Bonds’ are attractive to local investors as they are tax fee, dealers say.

The closing date for subscriptions is September 14.