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HARARE – The Reserve Bank of Zimbabwe (RBZ) on Wednesday floated treasury bills (TBs) for $150 million, the fifth public auction in three months, as the central bank continues to mobilise funds to support government operations.
The issue follows last week’s unsuccessful attempt by the apex bank to raise $300 million through 365-day paper meant for the same purpose.
The RBZ only managed to raise $81 million as the market, for different reasons, appeared unready for long term paper.
Before that, the central bank had conducted highly successful auctions for short term TBs which were over-subscribed.
The latest issue is in the form of 365-day TBs, and open only to financial institutions.
“The Reserve Bank of Zimbabwe (RBZ) hereby invites commercial banks, building societies, POSB and IDBZ, to subscribe to treasury bills amounting to one hundred and fifty million dollars,” the central bank said.
As with the others issued before, the bills have an “open tender on a yield basis” interest rate and other special features which include prescribed and liquid asset status, tax exemption and acceptability as collateral for overnight accommodation at the central bank.
Investors are restricted to a maximum of two applications, of a minimum $1 million each.
The offer opens on October 9 and closes on October 10, with allotment to be done on the same day. – New Ziana
Online Reporter