Financial Times

Local investment bonds oversubscribed

Sri Lanka’s Central Bank said last week its investment offer for foreigners and non resident Sri Lankans including migrant workers – the Sri Lanka Development Bonds (SLDBs) amounting to $150 million – has been oversubscribed many times over.

“The offer which closed on August 11 was oversubscribed by 115% with bids amounting to $322 million being received,” the bank said in a statement, adding “the eligible investors” response to the issue is very encouraging and clearly reflects the investors’ confidence and their preference to lock their funds in longer tenure guilt edged dollar bonds issued by the Sri Lankan government.”

The bonds are for a three-year maturity period for eligible investors like foreign citizens, non-resident Sri Lankans, Sri Lankan dual citizens, specified companies which have entered into agreements with the Board of Investment of Sri Lanka and specified insurance companies.

The Bank said since the offer was heavily oversubscribed, the government has decided to accept $175 million of three-year SLDBs at a rate of six month LIBOR + 138.3 basis points (weighted average).

The government, through the Central Bank, has so far issued US$475 million of SLDBs.

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