The issue of Sri Lanka development bonds amounting to US$100 million has been concluded with $82.86 million of bids received from investors on Tuesday (11), Central Bank announced.
The bank received $55.9 million bids for the 1 year 8 months bond and accepted $ 54.4 million worth bids at a weighted average fixed rate of 5 percent.
It has accepted $25.46million from $.26.96 million worth bids received for the 3 years 8 months bond at a weighted average fixed rate of 5.75 percent.
The offer of the development bonds denominated in US dollars was opened from September 5 to 11 for bidding with the settlement on September 17.
The funds are to meet development spending, roll over existing debt and pay interest, CB sources said.
The government’s maximum borrowing limit for 2018 is Rs1,893 billion of which Rs1,313 billion will be obtained from local sources and Rs580 billion from foreign sources, Jayasekera said.
The cabinet approved issuing $3 billion (about Rs456 billion) worth of Sri Lanka development bonds and borrow up to another $2 billion by issuing International Sovereign Bonds.
The government will go early to the market this year with the issue of International Sovereign Bonds and not wait till mid-year like in 2017, senior Central Bank official said.
This year, there are no maturing sovereign bonds while about $2.5 billion of SLDBs will mature this year, leaving room to raise another $500 million, he said.
The government has to pay $600 million in interest on dollar bonds this year.