One and a half billion rupees worth of bonds were auctioned on Thursday with a coupon of eight and a half percent.rn
rnThe issue, which was over subscribed, has a market yield of 9 point zero eight percent.rn
rnPublic debt department says the long-term bonds will also help the private sector by providing a benchmark yield curve.rn
rnldblquote We have an on going restructuring programme. Institutions like the CPC and CEB are borrowing at the moment,
dblquote says A G Karunasena of the Central Bank.rn
rnldblquote Under the restructuring programme their borrowing will be reduced and after that only the private sector will be left with. rn
rnldblquote The private sector has three sources get its borrowings they can go to the equity market, or from the short term borrowing from the banking system or the debt market. To do that they need a reference yield curve and the long term yield curve will be an ideal.
The first fifteen-year bond hit the market this week considerably extending the risk free yield curve.