US$ 35 m development bond issue opens
The Government of Sri Lanka will be issuing a US$ 35 million three year bond and US$ 10 million four-year bond carrying an interest rate of six month LIBOR (London Inter Bank Offer rate) for US Dollars plus a margin through competitive bidding today.
The issue will be open to bids from 11 a.m. today till 10 a.m. on 19 March with the minimum investment stipulated as US$ 100,000 in multiples of US$ 10,000.
The auction based issue will carry semi-annual interest payments and be exempt from income tax in Sri Lanka.
The agents for the issue will be selected licensed commercial banks and primary dealers with the Bank of Ceylon as the paying agent. The issue will be governed by the laws of Sri Lanka.
Eligible investors include foreign citizens, non-resident Sri Lankans, Sri Lankan dual citizens, authorised dealers, primary dealers, specified companies that have entered into agreement with the Board of Investment and specified insurance companies registered under the Insurance Act.
Designated agents to the issue include the Bank of Ceylon, Capital Alliance Ltd., Pan Asia Banking Corporation. The Commercial Bank of Ceylon Plc, Deutche Bank AG, DFCC Vardhana Bank Ltd., Indian Overseas Bank, First Capital Treasuries Ltd., Hatton National Bank Plc, the Hong Kong and Shanghai Banking Corporation, Indian Bank, Acuity Securities Ltd., MCB Bank Ltd., the National Development Bank, Nat Wealth Securities, People’s Bank, Public Bank Berhad, Sampath Bank Plc, Seylan Bank Plc, the State Bank of India, Entrust Securities Plc, CitiBank NA, Habib Bank Ltd. and Wealth Trust Securities Ltd.
