SLDB auction worth 62 million dollars undersubscribed

COLOMBO (News1st): A 62 million dollar auction of Sri Lanka Development Bonds was undersubscribed on Wednesday with only bids worth USD 18 million coming from investors, Central Bank data showed. In March, a similar Sri Lanka Development Bonds of 220 million dollar auction was also undersubscribed and received only bids worth 22 million dollars while the central bank only accepted 11.93 million dollars. The monetary authority invited bids for floating rate arrangement for 6 month, 1 year 3 month and 3-year maturities with 6 month LIBOR or its successor for US Dollar+ Margin through competitive bidding and fixed-rate arrangement for 6 month, 1 year 3 month, 3 year and 4-year 9-month maturities but the bids were received only for the fixed-rate arrangement due to the current uncertainty.