Stampede as gov't raises P1.1bn on bond market

Each quarter, the Bank of Botswana (BoB) holds auctions of bonds and six-month treasury bills on behalf of government under the P15 billion note issuance programme which dates back to February 2011. The auctions are limited to commercial banks, who hold exclusive bidding rights.

The August 31 auction was marked by intense bidding, due largely to the debut of two new longer-term bonds collectively offering P700 million, with maturing ranging from 2029 to 2043. According to notes on the auction results, the bond maturing in 2043 attracted bids worth P411million for the P300 million on offer. The BoB eventually allotted P301 million at a yield of 5.2 percent, the highest in the market for government paper.  The 2029 bond offering P400 million, had offers equaling the amount on offer but only P129 million was allotted at a yield of 4.76%.