Upping It

The Central Bank says it hopes to raise up to US$ 400 mn in bonds shortly, to bridge the budget deficit and ease the pressure on the local debt market.
The bank had earlier planned to raise US$ 250 mn. But delays in aid disbursements and a weak rupee has prompted a change of plans.rn

rn”The Treasury has indicated to us that they dont want to raise the money from the local debt market, as it will put pressure on the present interest rates,” Central Banks Deputy Governor, W A Wijewardene told reporters on Tuesday.rn

rnThe first round completed last week saw the government raising US$ 144.75 mn in two-year bonds. The issue was priced at six months London interbank offered rate or LIBOR plus 185.20 basis points.rn

rnThe balance funds will be raised in several tranches during the coming months.rn

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