We've reported extensively on the success of the first tranche of the city Council's Municipal Bond Offering - which sold like hotcakes. And while that bond instrument was mopping up some of the excess liquidity in the banking system, quietly BEL's Series 5 Debenture was doing just the same.
The $25 million dollar Offer attracted almost 40 million dollars in subscription requests!
And with that robust market response, BEL closed it off yesterday, eleven days before the scheduled closing date.
The Series 5 Debenture offer a fixed interest rate of 7 per cent and matures in 12 years. Each debenture cost $100 dollars.
BEL is now considering offer another series of debentures in 2013 to meet the excess demand for financial instruments with an attractive interest yield - since the commercial banks are offering very low interest rates on savings - and in fact turning away many large depositors.
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