Mmegi

Gov't seeks P3.1bn in fresh funding round

Capital central: While the BoB conducts the auctions, the Finance Ministry controls government’s domestic debt issuance programme
Capital central: While the BoB conducts the auctions, the Finance Ministry controls government’s domestic debt issuance programme

The Bank of Botswana (BoB) will next week seek P3.1 billion in debt for government, returning to the capital market after a bid for P750 million flopped recently, BusinessWeek has learnt.

The central bank’s inaugural inflation-linked bond, carrying a face value of P750 million, attracted seven bids worth only P220 million with demands for yields reaching as much as 10.5%. The BoB did not accept any of the bids.

The 21-year inflation-linked bond, first mulled two years ago, was expected to be sought after by the market as a hedge against inflation.

Editor's Comment
Warm relations must not come at the expense of fair trade

“I believe that free but fair trade isan absolute imperative”– John E. JamesFor two countries bound by geography, history and deep economic ties, periods of diplomatic strain serve neither side well. President Duma Boko’s efforts to restore momentum to relations with Pretoria deserve recognition, particularly at a time when Southern Africa faces shared challenges ranging from sluggish economic growth and unemployment to energy security...

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