RBZ issues new $300m TBs
Harare, (New Ziana) – The Reserve Bank of Zimbabwe (RBZ) on Wednesday floated treasury bills (TBs) for $300 million as it continues to mobilise funding for government operations.
The issue follows three other highly successful auctions conducted in
the past two months in which the central banks raised a combined $190
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.
The latest public auction is for 365- day TBs, whose purpose is again to finance government operations.
“The Reserve Bank of Zimbabwe (RBZ) hereby invites financial institutions including commercial banks, building societies, POSB and
IDBZ, to subscribe to treasury bills amounting to three hundred million dollars,” the central bank said.
Investors are restricted to a maximum of two applications, of a minimum $1 million each.
While the specific sectors to be supported through the funding were not indicated, sources say some of the money will be directed towards the summer cropping season.
The latest offer opens on October 2 and closes on October 3, with
allotment taking place soon after closure.
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 RBZ.