Sri Lanka to sell US dollar bonds

Sept 01, 2008 (LBI) – Sri Lanka will sell 70 million dollars of 2-year bonds which pays interest every six months, on an auction basis for which subscriptions will open on September 08, the government’s debt office said. A 70 million US dollar ‘Sri Lanka Development Bond’ tranche is maturing on September 22, which will be the settlement date for the new bond issue, the public debt office, which is a unit of the central bank said in a public notice.

At the last ‘development bond’ auction in June, Sri Lanka offered 200 million US dollars and accepted bids for 230 million US dollars.

The bonds went for 294 basis points above the London Inter bank Offered Rate (LIBOR).

In that month 250 million dollars of bonds matured.

The bond is offered to foreign citizens, firms, non-resident Sri Lankans, dual citizens, and firms who are approved by Sri Lanka’s Board of Investment.

Income tax paid in Sri Lanka will be reimbursed by the issuer, the public debt office said.