Stampede as gov't raises P1.2bn in capital market

At the February 28 auction held by the Bank of Botswana (BoB), the bid to cover ratio, a measure of the demand amongst bidders, hovered above 2.0 across the treasury bill and three bonds. Experts believe a bid to cover ratio of above 2.0 indicates a successful auction with aggressive bids.

The government, through the BoB, borrows quarterly from the local capital market mainly to develop the market’s capacity, but also to fund gaps in the national budget.