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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
Botswana must not be a flag of convenience for rogues

‘A man’s country is not a certain area of land, of mountains, rivers, and woods, but it is a principle and patriotism is loyalty to that principle’.- George William CurtisAccording to the report carried in this publication, the fraudsters operating the so-called “dark fleet” have selected Botswana’s flag as their cover of choice. This is a direct assault on our country’s most valuable asset, the good name.For decades, Botswana has...

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