Sri Lanka’s Bank of Ceylon offers up to 10-year bonds

Oct 14, 2013 (LBO) – Sri Lanka’s state-run Bank of Ceylon is offering listed debentures of up to 10 years paying tax free interest up to 13.75 percent, its offer document said. The bank is offering 4.0 billion rupees in bond with an option of a further 4.0 billion rupees.

The subscription opens on October 21. The prospectus says 50 percent of the bonds sold will be for 5-year, 15 percent for 8-year, 15 percent for 9-year and 20 percent 10 year.

For 5-year debentures, a fixed annual coupon of 13.0 percent, 12.6 percent every six months or floating rate 100 basis points above the 6-month Treasury bill yield is offered.

For 8-year bonds, a 13.25 percent annual fixed rate or a floating rate of 100 basis points above the weighted average 6-month Treasury bill yield is offered.

For 9-year bonds, a fixed rate of 13.25 percent or a floating rate of 125 basis points above the 6-month Treasuries yield is offered.

A 10-year bond with a 13.75 percent fixed coupon or a floating rate of 125 basis points above the 6-month Treasury bill yield is also offered.