DAILY NEWS Reporter
THE plan to raise
128.3bn/- through a 15-year treasury bonds by the Bank of Tanzania (BoT)
on Wednesday was not achieved with low yield rates likely to be one of
the major reasons for the
undersubscription.
The BoT auction summary shows that the
long term debt instrument fetched 61.4bn/- with only 46.8bn/- retained
by the government as successful amount. Funds collected through debt
instrument are important for implementing long term investment including
the infrastructure projects.
Some commercial banks, pension funds,
insurance companies and a few microfinance institutions are some of the
investors in the long-term government papers.
The weighted average yield to maturity
increased to 14.79 per cent compared to 14.47 per cent of the session
held in June this year while the weighted average coupon yield increased
to 14.64 per cent, 14.35 per cent of the previous session.
The weighted average price for successful
bids was 92.21 compared to 94.06 of the 15 years bonds auction held last
month. The highest bid /100 was 95.50 while the lowest bid was 70.00.
The minimum successful price/100 was 90.59 down compared to 91.96
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