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Sri Lanka to sell 2 and 6 year bonds to raise Rs20bn

COLOMBO (EconomyNext) – Sri Lanka will auction 2 and 6 year bonds on April 07 to raise 20 billion rupees on April 07, the state debt office said.

The debt office is offering 12.5 billion rupees of 2 year bonds maturing on 15.05.2017 with a coupon of 8.75 percent. There had been no auction of 2-year bonds for almost two years, dealers said.

Also on offer are 7.5 billion rupees of 6 year bonds maturing on 01.08.2021 paying a coupon of 11.00 percent.

The 6-year bond was last sold at a weighted average of 9.55 percent on March 17.

The bond is now quoted in the secondary market at around 9.05/25 percent.

There is no rollover of old bonds on this date.

In money markets Monday overnight gilt-backed repos were quoted around 6.30/40 percent and call money around 6.70 percent where there is a central bank ceiling imposed by moral suasion.

In bond market a 2-year bond maturing on 15.05.17 was quoted around 7.85/8.00 percent and a 3-year bond maturing on 01.06.2018 was quoted at 8.52/58 percent, dealer said.

Four-year bonds maturing on 15.09.2019 were quoted around 8.82/88 percent.

A 7-year bond maturing on 01.07.22 popular among foreign investors was quoted wide at 8.85/9.15 percent, dealers said.

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Eight-year bonds maturing on 01.09.2013 were quoted at 9.65/9.75 percent and 10-year 15.03.2025 quoted 10.00/10 percent.