ECONOMYNEXT – Sri Lanka’s debt office is seeking to raise up to 110 million US dollars in bonds of up to 5-years in a auction which will close on July 27.
The auction Sri Lanka Development bonds will be for 30 million US dollars, and could be upsized by another 80 million US dollars.
Bids could be made for 9-months, 1-year 8-months, 2-year 9-months and 5 years.
The dollar denominated bonds are targeted at domestic investors permitted to hold foreign exchange assets.
On July 30, 106.56 million US dollars in SLDBs are maturing.
In the wake unprecedented money printing to keep down domestic gilt yields below 5.26 percent, dollar bond yields have outpaced rupee yields in the domestic markets, which Sri Lanka sovereign bonds are also trading at steep discounts.
The excess liquidity has triggered BOP deficits as the new money is redeemed against forex reserves. (Colombo/July22/2021)