By: Nghiinomenwa-vali Hangala
Investors have submitted 32 bids worth N$1.1 billion in an attempt to invest in a 364-Day Treasury Bill (TB) during an auction on Wednesday.
The auction result is shown as released by the central banks.
The amount offered by the investors was notably significant, given the fact that the government only intended to borrow N$390 million through the 364-day TB.
Moreover, it also highlights the availability of capital seeking potential avenues to grow in the economy, debunking narratives stating otherwise.
Overall, the government aimed to borrow N$1.6 billion through its four TBs, according to the Bank of Namibia’s auction notice.
During the auction yesterday, it was revealed that investors had N$2.8 billion which sought returns through their bids, recording an oversubscription of N$1.2 billion.
Despite this oversubscription, the government only borrowed what it required (N$1.6 billion), leaving the rest looking for other investment avenues.
The borrowing requirement for this financial year (FY2025/26) is N$33.6 billion, leaving the government with just over two months to meet the budget shortfall, which cannot be fulfilled by the state’s revenue collection.
According to the central bank, N$2,5 billion will be raised through Treasury Bills. erastus@thevillager.com.na
