Govt. issues first post-default Domestic Dollar Bond under new PDMO

SRI Lanka will issue a $ 50 million Domestic Dollar Bond (DDB) next week, the country's first foreign-currency borrowing instrument since the 2022 default and the first Bond issued under the newly operational Public Debt Management Office (PDMO).

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The move also comes against the backdrop of an earlier Cabinet proposal in October to raise up to $ 100 million through the DDB window, with the authorities opting to begin with a $ 50 million tranche.

The upcoming auction on 3 December will offer one-year, two-year, and three-year maturities. Rates will be determined through competitive bidding, with interest payable semiannually or annually in accordance with domestic tax laws.

Subscriptions from locally incorporated licenced commercial banks will open at 9 a.m. on 1 December and close at noon on 3 December, with settlement scheduled for 10 December.

The minimum investment is $ 1 million, increasing in multiples of $100,000. Payments must be made to the Central Bank of Sri Lanka's (CBSL) account at the Federal Reserve Bank of New York. Transfers will be allowed on request through delivery and registration.