Sri Lanka offers Rs14bn in 4 and 6-year rupee bonds

COLOMBO (EconomyNext) – Sri Lanka has offered 7.0 billion rupees each in 4 and 6-year bonds, the state debt office said.

The 4-year bonds with a coupon of 10.6 percent would mature on 15 September 2015.

The 6-year bond with a coupon of 11.00 percent would mature on 01 August 2021.

In the secondary market 15 September 2015 bond were quoted around 8.65/9.00 percent levels dealers said.

At the last auction, 7-year bonds were sold at an average yield of 9.17 percent. The bond maturing on 01 July 2022 quoted 9.05/15 percent levels and is very liquid.

In theory the government should be able to raise 6 year funds below that rate, but with 6-year bonds being illiquid, the market may demand a higher rate, dealers said.