Friday, July 20, 2018

15-year bond undersubscribed

PichaDAILY 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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