Latest News

Popular Posts

You have news tips, feel free to contact us via email editor@thevillager.com.na

TREASURER NEED N$1,05 BILLION ON THURSDAY

PHOTO: CONTRIBUTED

By: Nghiinomenwa Erastus

The government will auction its six months, and 11-months I-Owe-You notes to raise N$1,05 billion from the market next Thursday through the central bank.

The Bank of Namibia (BoN) announced through an invite send out on Friday to potential investors.

The treasurer seeks the N$550 million through a six-month treasury bills auction- borrowing the money for six months at an interest rate (discount) that will be agreed upon by the individual/institutional investor and the central bank.

After six months, the government pays back the money with interest. The investor can be given a chance to roll over the investment to another treasury bill determined by the central bank and at different rates.

The government will borrow the remaining N$500 million through an 11 months-treasury bill.

According to the invite, individual and institutional investors with savings and funds to grow can buy a unit/subscription in the two TB with a minimum of N$10 000 through the auction on Thursday.

The subscription forms are available at the Bank of Namibia.

However, those planning to invest and get to be awarded units should be able to lend the money to the treasurer before 10h00 on Friday, 15 October 202, after the auction.

In October, there are three more auction days for three, six, and nine months planned according to the central bank auction calendar.

The treasurer held a 91-day treasury bills auction last week, on 07

October 2021- seeking N$550 million

According to the auction’s outcome, the central bank has received 30 bids from potential investors showing their willingness to invest/lend to the government at a different interest rate (discount).

The 30 bids were worth N$871. 79 million, representing an over-subscription of N$321,79 million.

While the bid-to-cover ratio, which is an indicator of the demand for Treasury securities, stood at 1,59.

Out of the 30 bids, 15 were successfully offered a chance to lend to the government for three.

Of those successful, 14 were allocated all they subscribed for/the unit they auctioned for in the T-bill.

Email: erastus@thevillager.com.na

Julia Heita

Related Posts

Read Also ... x