Central Bank of Sri Lanka to issue 225 million US dollar development bonds with a tenor of 1 year, 2 years, and 3 years and 2 months to local and foreign investors.

The subscription will be at a floating rate of 6 month LIBOR for USD plus a margin through competitive bidding, or at a fixed rate to be determined through competitive bidding said the Debt Department.

Minimum investment is 10,000 US dollars with additional investments in multiples of 10,000 US dollars.

The issue will be open for subscription from 16 to 19 January and has a date of settlement of 23 January 2017.

Development bonds are to be issued by the Public Debt Department of Central Bank and exempted from income tax paid in Sri Lanka.

Selected licensed commercial banks and primary dealers are designated agents to purchase bonds while the paying agent is the Bank of Ceylon.

Foreigners, non resident or dual citizen Sri Lankans, NRFC/RFC account holders, authorized dealers in foreign exchange, primary dealers in government securities, BOI specified companies and specified insurance companies are among eligible investors.

A proposal to borrow 1.5 billion US dollars from the issuances of development bonds this year was approved by cabinet on Tuesday.