Sri Lanka calls bids for US$100mn in floating rate bonds

COLOMBO (EconomyNext) – Sri Lanka is offering for 100 million US dollars in 2, 3 and 5 year dollar denominated bonds targeted at the domestic market at an auction that will close on June 29.

The debt office, which is a unit of the Central Bank said it was inviting offers for 1-year 10 months, 3-year 7 months and 5-year tenors styled ‘Sri Lanka Development Bonds.’

The bonds will pay a risk premium above the 6-month US dollar London Interbank Offered Rate.

On May 28, Sri Lanka sold 338 million dollars of bonds by 329 million came from 1-year 1-month bonds, at 316.69 basis points above Libor, which are among the shortest tenors of such bond ever sold.

Two year and 11 month bonds worth 9 million dollars were sold to yield LIBOR plus 353.89 basis points.

Sri Lanka’s External Resources Department has separately called offers for a three year term loan of at least 500 million dollars.

Finance Minister Ravi Karunanayake on Wednesday asked exporters to bring back forex and invest in goverment dollar bonds, which he said paid higher rates than deposits abroad.







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