The Central Bank of Sri Lanka (CBSL) has reported a substantial oversubscription at the government’s first treasury bond auction of 2024, aimed at raising Rs. 95 billion. Investors showed significant interest in both 3-year and 8-year treasury bonds, surpassing expectations.
Key Highlights:
- Oversubscription: The auction saw a total demand of Rs. 277.9 billion, more than double the original issue amount. The 3-year bonds attracted a demand of Rs. 215.7 billion for an issue of Rs. 70 billion, and the 8-year bonds received Rs. 62.1 billion in demand for an issue of Rs. 25 billion.
- Accepted Bids: Despite the high demand, the CBSL accepted bids only for the planned Rs. 95 billion worth of bonds.
- Interest Rates: Treasury bonds maturing in 3 years and 5 months will offer an annual interest rate of 10.75%, while 8-year bonds will pay 9% annually.
The strong demand for treasury bonds highlights investor confidence in the Sri Lankan government’s fiscal strategies, as the CBSL continues to manage public debt with competitive interest rates.
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Central Bank of Sri Lanka (CBSL)
Last modified: October 14, 2024
