US $ 75mn SLDB issue oversubscribed by 15%

The latest Sri Lanka Development Bond (SLDB) offer of US $ 75 million was oversubscribed by over 15 percent, enabling the Central Bank to offer SLDBs to the tune of US $ 87 million.

“The most recent SLDB auction held from November 10-13, 2020, with settlement on 18.11.2020, enabled to raise US $ 24.82 million. At the said auction, maturities offered varied from one year two months to four years two months and offered at a fixed rate of 6.69 percent to 6.82 percent.

Subsequent to the said auction, due to renewed interest/investor appetite for SLDBs, further investment of US $ 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. Accordingly, an aggregate amount of US $ 86.82 million was raised in all four maturities in comparison with the total offered amount of US $ 75 million,” the Central Bank said in a statement.

State Finance Minister Ajith Nivard Cabraal in a Twitter message said the oversubscription of SLDBs is “another indication of the rising level of investor confidence”.