Sri Lanka sells US$254mn in 3, 5-year bonds

June 24, 2013 (LBO) – Sri Lanka had sold 90 million US dollars of 3-year bonds at premium of 400 basis points above the London Interbank offered Rate and 164 million US dollars of 5-year bonds at 415 basis points above Libor, the state debt office said. In March 2013 Sri Lanka also sold 3-year bonds at 400 basis points.

Corrected/headline total US$254mn
The debt office, which is unit of the Central Bank said 50 million US dollars of 3-year bonds and 25 million in 5-year bonds paying a 6-month coupon above Libor was offered but orders were much larger.

The Central Bank had accepted all bids. The Libor rate Monday was 0.4138 percent, the Central Bank said.

The so-called dollar denominated Sri Lanka Development Bonds are popular among domestic banks and other investors who are allowed to have foreign currency assets.