Sri Lanka’s Central Bank to sell USD515mn development bonds

June 19, 2017 (LBO) – Sri Lanka’s Central Bank will issue 515 million US dollar development bonds with a tenor of 1 year 7 months, 3 years, 4 years and 4 years 9 months.

The Central Bank said the subscription will be at a floating rate of 6 month LIBOR for USD plus a margin through competitive bidding, or at a fixed rate to be determined through competitive bidding.

Minimum investment is 10,000 US dollars with additional investments in multiples of 10,000 US dollars.

The Central Bank may accept higher or lower amount than the offered amount at the auction depending on the market conditions.

The issue will be open for subscription from tomorrow to 27 June and has a settlement date of 30 June 2017.

Development bonds are to be issued by the Public Debt Department of the Central Bank and exempted from income tax paid in Sri Lanka.

Selected licensed commercial banks and primary dealers are designated agents to purchase bonds while the paying agent is the Bank of Ceylon.

The details of the offer are available in the offer document dated 19 June 2017.