RBZ third batch of TBs oversubscribed

RBZ third batch of TBs oversubscribed
Published: 30 September 2019 (82 Views)
THE Reserve Bank of Zimbabwe (RBZ) said on Friday it got offers four times more than the $100 million it sought to raise through treasury bills (TBs), signalling high investor appetite in the instrument.

The central bank was in the market on Wednesday with the third batch of TBs in two months as it continues to raise funding for Government operations.

Out of the $100 million it sought to raise via the 92-day treasury bills, the RBZ in results of the offer said total bids amounted to $419 million.

The bills, which had an "open tender on yield basis" interest rate, had other special features, which include prescribed and liquid asset status, tax exemption and acceptability as collateral for overnight accommodation at the RBZ.

 The RBZ said it allotted $102 million out of the funds on offer, with the highest interest rate that was offered being 25 percent, while 12 percent was the lowest.

The average rate was 13.6765 percent. The offer, which opened on Wednesday and closed on Thursday, was open to financial institutions including commercial banks, building societies, the POSB, IDBZ, insurance and pension funds and other corporates for subscription. Investment per investor was, however restricted to a maximum of two applications, of a minimum $1 million each.

Treasury bills are considered one of the safest forms of investment in the world as they are issued and backed by governments with little risk of default when it comes to payment on maturity.

Issuance of TBs had become a highly controversial issue in the previous administration as the Government raked up billions in debt through the instrument as well as a central bank overdraft facility to bridge its budget deficit.


- New Ziana

 

You May Like These Videos

Comments

There are no comments.

Latest stories

PHOTOS: Job Sikhala becomes an instant internet joke

by Social media | 03 October 2019 | 244 Views

America says it is worried about Zimbabwe

by Mandla Ndlovu | 03 October 2019 | 297 Views

Madinda Ndlovu to be discharged tomorrow

by Staff reporter | 03 October 2019 | 182 Views

What are behavioral disorders and how can they be managed?

by Temba Munsaka | 03 October 2019 | 173 Views

Government speaks on Robert Mugabe's body parts

by Mandla Ndlovu | 03 October 2019 | 309 Views

Zacc recovers $100m property from looters

by Staff reporter | 03 October 2019 | 179 Views

WATCH: Mnangagwa apologises for destroying Zimbabwe satire

by Mandla Ndlovu | 03 October 2019 | 170 Views

Mphoko's application for release of passport dismissed

by Staff reporter | 03 October 2019 | 137 Views

Zanu-PF restructuring exercise begins

by Staff reporter | 03 October 2019 | 140 Views

Petrotrade declares $1.5 million dividend

by Staff reporter | 03 October 2019 | 92 Views

MSU, Zupco seal bus deal

by Staff reporter | 03 October 2019 | 161 Views

Mnangagwa to open ZMF conference

by Staff reporter | 03 October 2019 | 145 Views

High Court sets EcoCash hearing date

by Staff reporter | 03 October 2019 | 142 Views

Mphoko barred from leaving Zimbabwe

by ZimLive | 03 October 2019 | 143 Views

CIO agents monitor Jonathan Moyo in Kenya

by Mandla Ndlovu | 03 October 2019 | 367 Views

Acie Lumumba targets criminals around Mnangagwa

by Mandla Ndlovu | 03 October 2019 | 350 Views

$100 limit for cash-out transactions

by Staff reporter | 03 October 2019 | 251 Views

ANC starts anti-sanctions campaign

by Staff reporter | 03 October 2019 | 143 Views

ZESN calls for political parties regulation

by Staff reporter | 03 October 2019 | 126 Views

We've no forced labour evidence on Zimbabwe diamonds, says US Embassy

by Staff reporter | 03 October 2019 | 139 Views

Ex-ZPC board chairman freed on bail

by Staff reporter | 03 October 2019 | 134 Views

Cyber Bill seeks to safeguard citizens

by Staff reporter | 03 October 2019 | 110 Views

Cassava launches Vaya tractor services

by Staff reporter | 03 October 2019 | 147 Views

MDC Alliance boycott slammed

by Staff reporter | 03 October 2019 | 100 Views

10-man Bulawayo Chiefs stun Harare City

by Staff reporter | 03 October 2019 | 111 Views

Zimbabwe has a reputational problem, says US

by newzimbabwe | 03 October 2019 | 124 Views

MDC Alliance walk of shame

by Nduduzo Tshuma | 03 October 2019 | 184 Views

MDC councillors want suspension of Cowdray Park projects

by Staff reporter | 03 October 2019 | 113 Views

RBZ floats $300m additional TBs

by Staff reporter | 03 October 2019 | 105 Views

Teenagers rob soldier

by Staff reporter | 03 October 2019 | 116 Views

Duo rape corpse, get death sentence

by Staff reporter | 03 October 2019 | 122 Views

Mnangagwa to fly out for the zenith times

by Staff reporter | 03 October 2019 | 106 Views

Chamisa's MPs approach court to reverse 5 months allowance garnish

by newzimbabwe | 03 October 2019 | 84 Views

Zimra official forges Customs papers

by Staff reporter | 03 October 2019 | 69 Views

Zifa courts two nations for Warriors' friendlies

by Staff reporter | 03 October 2019 | 56 Views