Lending Long-term

The Central Bank plans to issue a 10-year bond issue in January, as part of its efforts to build a long-term yield curve.
Officials from the banks Public Debt Dept. said around Rs. 1 bn will be offered at the initial issue.rn

rnThe bond is likely to carry a coupon of about 10 percent, though market players are expecting to bid at around 11.5 percent.rn

rnThe ten-year bond, the first in Sri Lanka, has whipped up a lot of enthusiasm and is likely to be snapped up by pension and insurance funds.rn

rnThe 10-year issued will have the longest tenure after the six year bonds issued in late 2000.rn