LKR 10 Billion Development Bonds Issued at around 4%

Sri Lanka Development Bonds (SLDBs) for LKR 10 billion (USD 81,25 million) were issued at approx 4% at the moment.

Why did did Arjunan Mahendran issue 10 billion at 11.75% if there is a huge demand for Bonds even at around 4%.

The current issue of bonds were

• 2 year Bonds: USD 30.00 million at 6 month Libor +3.6%
• 3 year Bonds: USD 51.25 million  at 6 month Libor +3.8%

Current 6 month Libor rate is 0.41% and will change daily.
See here for current and historical LIBOR rates

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