Sri Lanka raises US$62mn dollars in SLDB post-auction placement
ECONOMYNEXT – A total of 86.8 million dollars had been raised from dollar denominated Sri Lanka Development Bonds this week with a 62 million dollars being sold after bids for 75 million dollar auction closed, the state debt office said.
The original auction raised 24.82 million dollars.
“Subsequent to the said auction, due to renewed interest/ investor appetite for SLDBs, further investment of USD 62 million was raised by close of business today, at the Weighted Average Fixed Rates determined for respective maturities on offer at the above auction, with settlement of such investments on 18.11.2020,” the central bank which conducts the auctions on behalf of the Treasury said.
“Accordingly, an aggregate amount of USD 86.82 million was raised in all four maturities in comparison with the total offered amount of USD 75 million.”
The private placement is unusual. In the past loans had been raised from the Bank of Ceylon and People’s Bank forex units. They are however later converted to SLDBs.
SLDBs are mostly bought by domestic investors. (Colombo/Nov17/2020)