Sri Lanka sells 1 and 2 year bonds; risk premium up
Feb 19, 2016 17:34 PM GMT+0530 | 0 Comment(s)
ECONOMYNEXT - Sri Lanka has sold 294 million dollars of 13 and 26 month bonds floating rate bonds which will pay up to 424 basis points above the 6-month London Interbank Offered Rate, sharply up from last year.
The Sri Lanka Development Bonds (SLDB) styled bonds are offered mostly to resident investors who are allowed to hold dollar deposits.
Key buyers include banks who borrow abroad at lower rates and buy into the government bonds.
The debt office said it accepted 247.15 million dollars out of 290.5 million dollars of bids for 1 year 1 month bonds at a weighted average yield of 388.83 basis points above Libor. In May 2015, Sri Lanka sold 13 month bond at 316.69 basis points above Libor.
It also sold 47 million dollars of 2-year 2-month bond after getting bids of 52 million at 424.79 basis points above Libor. In April 21, 2-year bonds were sold at 360 basis points above Libor. (Colombo/Feb19/2016)