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

Sri Lanka's state minister of defence Ruwan Wijewardene (L) takes part in a press conference in Colombo on April 24, 2019. - A Sri Lankan security dragnet hunting those responsible for horrifying bombings that claimed more than 350 lives has scooped up a further 18 suspects, police said April 24, as pressure mounted on politicians to explain why no one acted on intelligence warnings. (Photo by ISHARA S. KODIKARA / AFP) (Photo credit should read ISHARA S. KODIKARA/AFP/Getty Images)

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.