Sri Lanka urban bonds oversubscribed

Sept 29, 2010 (LBO) – A five-year bond issued by Sri Lanka’s Urban Development Authority (UDA), a state agency, to raise 10 billion rupees has been oversubscribed, drawing applications worth 11 billion rupees, a statement said. The managers to the issue, Bank of Ceylon, said eight investors had made applications to the value of 6.8 billion rupees

A total of 88 applications had been received by Tuesday.

The first tranche of the bond to raise five billion rupees which opened last Thursday, September 23, was oversubscribed within days.
The UDA then announced it would go for another five billion rupees as previously announced.

The 50 million debentures at 100 rupees each are being issued by the UDA to raise cash to resettle squatters occupying prime property in Colombo city owned by government and to free land for private sector commercial development. The bonds are to be listed on the main board of the Colombo Stock Exchange.