Govt raises P200m more in debt

In the market: Through its monthly auctions of treasury bills and bonds, the Bank of Botswana not only raises funding for government but also helps deepen the financial sector. In addition, its auctions help set the benchmark yield for other issuers of debt in the market PIC: MORERI SEJAKGOMO
In the market: Through its monthly auctions of treasury bills and bonds, the Bank of Botswana not only raises funding for government but also helps deepen the financial sector. In addition, its auctions help set the benchmark yield for other issuers of debt in the market PIC: MORERI SEJAKGOMO

Government raised just P200 million of the P1 billion it was hoping to secure at a recent auction of bonds and treasury bills, as the central bank resisted the market’s push for higher yields.

The BoB, as government’s banker, conducts monthly auctions of treasury bills as well as bonds to primary dealers who are exclusively banks. At the auctions, the dealers compete to lend to the government by offering the yields they are seeking, with the BoB deciding the 'stop-out' yield or the level of interest it is willing to pay the dealers on particular securities on offer.

The Bank of Botswana (BoB) floated two treasury bills with maturities of three and six months, receiving bids of P1.05 billion on December 30.

Editor's Comment
Closure as pain lingers

March 28 will go down as a day that Batswana will never forget because of the accident that occurred near Mmamatlakala in Limpopo, South Africa. The tragedy affected not only the grieving families but the nation at large. Batswana throughout the process stood behind the grieving families and the governments of Botswana and South Africa need much more than a pat on the back.Last Saturday was a day when family members said their last goodbyes to...

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