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HARARE – The Reserve Bank of Zimbabwe (RBZ) said on Wednesday it successfully managed to raise $300 million through its latest 182-day treasury bill auction.
The offer, which opened and closed on Tuesday, was the sixth public auction of the paper, meant to raise funding for government operations.
Results of the offer show that total bids matched the $300 million that was on offer, with the exact amount having been allotted.
The highest rate was 17 percent, lowest 12 percent while the average was 14.02 percent.
Success of the issue all but confirms that the market remains ready to invest in short term paper after the central bank last month sought to mobilise $300 million using 365-day paper but got a dismal market response.
The bank only managed to raise $81 million then.
Tuesday’s issue was open for subscription by financial institutions including commercial banks, building societies, the Post Office Savings Bank and the Infrastructure Development Bank of Zimbabwe.
The TBs, whose interest rate was on an “open tender on a yield basis” had special features which included a prescribed and liquid asset status, tax exemption and acceptability as collateral for overnight accommodation at the central bank.
Applications were limited to a minimum of $1 million, with each investor restricted to two bids. – New Ziana
Bongani Ndlovu