Bids Galore

Sri Lankan Prime Minister Ranil Wickremasinghe (2nd R) arrives to visit the site of a bomb attack at St. Anthony's Shrine in Kochchikade in Colombo on April 21, 2019. - A string of blasts ripped through high-end hotels and churches holding Easter services in Sri Lanka on April 21, killing at least 156 people, including 35 foreigners. (Photo by ISHARA S. KODIKARA / AFP) (Photo credit should read ISHARA S. KODIKARA/AFP/Getty Images)

The Central Banks maiden 20-year treasury bond issue was snapped up at 6.08 percent as investors put in bids for Rs. 4.24 bn.
The issue carried a coupon of seven percent. rn

rnHowever, the bank offered and accepted bids for Rs. 1.035 bn. rn

rnThe issue will extend the yield curve from the present 15 years to 20-years, the Central Bank said on Monday.rn

rnBut debt market experts say the extended yield curve has so far failed to stimulate the corporate bond market.rn

rnCurrently bonds with shorter maturities are actively traded in the market, unlike issues above ten years.rn

rnThe bank is also contemplating options to issue bonds with floating rates of interest. rn


-LBO Newsdesk; LBOEmail@vanguardlanka.comrn