Gov’t raises additional P1.1bn debt
Thursday, June 09, 2022 | 830 Views |
The amount raised at the auction was 74% of the total P1.5 billion offered by the central bank to bidders at the auction, compared to 59% allotted in the April auction. Minimal movements in yields were seen in the auction, while Kgori Capital analysts reported that the nine-year and 18-year bonds as well as the six month treasury bill were over-allotted by 1.4 times, one time and 1.1 times.
Three of the five securities on offer were also over-subscribed, with the values of bids exceeding the amounts on offer, most notably in the auction for the six month treasury bill where bids amounted to P800 million against the P500 million on offer.
Despite the stronger bidding demand seen at auctions of government securities in recent auctions, allotments have generally remained below 100% as the Bank of Botswana has sought to restrain demands for higher returns by the bidders.
The monthly auctions are attended by commercial banks which hold the exclusive status of primary dealers and bid for the different securities by offering the yields they are seeking.
In fact, early election results in some areas across the country, speak to large voter turnout which suggests that voters crowded at polling stations to decide appropriately. The Independent Electoral Commission (IEC) revealed that 80% of the 1,037,684 people who had registered to vote turned up to exercise their right.It’s unfortunate that at the time of cobbling this editorial comment, results had just started trickling in. We recognise that...