Sri Lanka’s NDB offers 5-year 9.4-pct deep discount bonds

COLOMBO (EconomyNext) – Sri Lanka’s National Development Bank is selling 10 billion rupees f 5-year tax free bonds that will pay 9.4 percent a year, which could be redeemed earlier with the approval of 75 percent of bondholders.

The bank is offering ‘Type A’ bonds with a coupon of 9.4 percent, which will be paid every year.

‘Type B’ bond will have no coupon, but will be offered at a deep discounted price of 63.81 rupees per 100 rupee bond.

If redeemed earlier the holders will be paid a price compounded at 9.4 percent a year, the offer document said.

The bond sale opens on June 17. NDB is offering 7.5 billion rupees of bonds with an option to up to 10 billion rupees.