THE government raised 166.86bn/- from its 15-year Treasury bonds offered for sale yesterday resulting to oversubscription, signalling improved liquidity situation among main bond investors.
It is the second 15-year treasury bonds
instrument after the session held in February this year posting
impressive results, an indication of high investors’ appetite.
The Bank of Tanzania (BoT) auction
summary shows that a total of 70.5bn/-was offered for tendering and
attracted bids worth 166.86bn/-, though in the end it retained 70.5bn/-
as successful amount.
The weighted average yield to maturity
increased to 18.88 per cent compared to 18.77 per cent of the trading
session held early this year, whereby, weighted average coupon yield
increased to 18.40 per cent compared to 18.29 per cent.
The 15-year debt instrument that was
introduced to the market three years ago is one of the mechanisms used
by the government to raise money for implementing long term projects
particularly in infrastructure sector.
The minimum successful price/100 was
72.99 while the weighted average price for successful bids was 73.33.
The highest bid /100 was 75.66 while the lowest bid/100 was 65.05.
The number of bids received was 90 and a
successful bid was 54. Pension funds, commercial banks, insurance
companies and a few micro-finance institutions are some of the key
investors in the long-term government papers.
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