Harare, (New Ziana) – The Reserve Bank of Zimbabwe (RBZ) on Monday floated 182-day treasury bills, seeking to raise $300 million to finance government operations.
The issue, the sixth public auction of the paper, follows largely unsuccessful attempts by the central bank in the past one and half months to mobilise more funding.
While initial TB issues were oversubscribed, the last two were poorly subscribed raising concerns about possible market fatigue or un-readiness to invest in long term paper given the inflationary environment.
The RBZ said the paper 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 is on an “open tender on a yield basis”, would open for subscription on Tuesday, 12 November, with those interested in subscribing limited to a four hour window to do so.
Other special features on the bills include a prescribed and liquid asset status, tax exemption and acceptability as collateral for overnight accommodation at the central bank.
Applications are limited to a minimum of $1 million, with each investor restricted to two bids only.
New Ziana
