Sri Lanka Bank of Ceylon to sell 5-year bonds

May 13, 2010 (LBO) – Sri Lanka’s state-run Bank of Ceylon will sell 5.0 billion rupees of 5-year bonds in June with fixed and floating rate coupon which will be listed in Colombo Stock Exchange. The Colombo Stock Exchange said 50 million debentures of 100 rupees and subscriptions will open on June 01, the stock exchange said.

A fixed rate bond will come with an 11.5 percent coupon with interest paid every six months, an official said. A floating rate bond will be priced 0.75 percent above the gross 6-month Treasury bill yield. Treasury bill yields are usually quoted less a 10 percent withholding tax.

In November 2008 the bank raised 4.2 billion rupees in fixed and floating rate bonds. At the time it paid a fixed rate of 19 percent.