Sri Lanka urban bond draws investors

Sept 28, 2010 (LBO) – A five-year bond issued by Sri Lanka’s Urban Development Authority (UDA), a state agency, to raise 10 billion rupees has drawn applications worth 8.2 billion rupees, a statement said. The bonds are to be listed on the main board of the Colombo Stock Exchange. The managers to the issue, Bank of Ceylon, said seven investors had made applications to the value of 6.3 billion rupees

It said a total of 66 applications had been received by Monday.

A five billion rupee initial tranche of the bond which opened last Thursday, September 23, was oversubscribed within days, prompting the UDA to go for another five billion rupees as previously announced.

The UDA is issuing 50 million debentures at 100 rupees each to raise cash to resettle squatters occupying prime property in Colombo city owned by government and to free land for private sector commercial development.