Mmegi

Yields fall as BoB raises P5.1bn for gov’t

At the helm: BoB governor, Lesego Moseki. The central bank is government’s agent in the capital market
At the helm: BoB governor, Lesego Moseki. The central bank is government’s agent in the capital market

The Bank of Botswana enjoyed another successful effort in the capital market, raising P5.1 billion in government debt at the last auction of treasury bills and bonds, whilst the cost of borrowing continued to slide.

Under government’s domestic note issuance programme, the BoB floats bonds and treasury bills each month to raise debt for government in the capital market.

At the auctions, primary dealers, who are exclusively banks, compete to lend to the government by offering the yields they seek. The BoB decides the yield or the 'interest' level it is willing to pay the dealers on the particular securities on offer.

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