RBZ targets $200 mln with 272-day treasury bills

Harare, (New Ziana) – The Reserve Bank of Zimbabwe (RBZ) on Tuesday floated a new 272-day treasury bill tender under which it is aiming to mobilise $200 million to fund government operations.

The offer, which will be open for just four hours, is open to financial institutions such as commercial banks, building societies as well as the Infrastructure Bank of Zimbabwe and Post Office Savings Bank.

Last week, the central bank managed to raise $300 million after issuing 182 day paper.

Tuesday’s TBs come with an open tender on a yield basis interest rate and other special features such as prescribed asset status, liquid asset status, tax exemption as well as acceptability as overnight accommodation by the central bank.

Applications are restricted to two per investor at a minimum subscription of $1 million.

Since resuming public auctions of treasury bills in August this year, the Reserve Bank has mobilised more than $500 million in support of various government programmes.

There have, however, been calls for the Ministry of Finance to be transparent by outlining the activities that will have been funded through the funds raised using Treasury Bills.

Issuance of TBs at some point became a contentious issue as the previous government raked too much debt using the instrument.
New Ziana