BOZ sells USD34mn worth of T-bills as sub­scrip­tion ap­petite con­tin­ues to de­cline

Zambian Business Times - - BUSINESS REVIEW -

The Bank of Zam­bia sold the Kwacha equiv­a­lent of USD34mn worth of treasury bills in Thurs­day 07 June auc­tion. The ZMW950mn debt sale of­fer was un­der­sub­scribed with ZMW344mn al­lo­cated of the bids that to­taled ZMW402.5mn. Ap­petite for 1 year out­wit all other tenors with ZMW337mn al­lo­cated ac­count­ing for over 96% of the debt sale as play­ers locked in a yield of 17.806%, 11bps higher than a fort­night ago at 17. 6955%.

Ap­petite for Kwacha gov­ern­ment debt has de­clined over the last few months fol­lowed damp­ened in­vestor con­fi­dence and dry­ing liq­uid­ity in light of sen­ti­ment around Zam­bia’s fis­cal po­si­tion. The Bank of Zam­bia how­ever has stepped up its ef­forts to widen the sub­scrip­tion pool by kick­ing of a lo­cal road show to all pro­vin­cial cen­ters to lure the re­tail space to par­tic­i­pate in the lo­cal debt of­fer­ings.

Other tenors such as the 273 day are pay­ing 13.5%, a 60bps rise from 12.9008% a fort­night ago.

Next auc­tion will be held on Thurs­day 21 June at which ZMW950mn will be on of­fer.

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