RBZ floats $500 million Treasury Bills

RBZ floats $500 million Treasury Bills

Reserve Bank of Zimbabwe Governor John Mangudya presents his Monetary Policy Statement, while Finance and Economic Development Minister Professor Mthuli Ncube and Permanent Secretary George Tongesayi Guvamatanga look on at the RBZ in Harare. —(Picture by Tawanda Mudimu)

The Reserve Bank of Zimbabwe (RBZ) is seeking to raise $500 million through the issuance of Treasury Bills to fund Covid-19 pandemic expenditure.

The pandemic which was first detected in China last December, has killed thousands and infected millions worldwide.

In a public notice the RBZ invited bidders from the financial services sector to subscribe to the TBs tender.

“RBZ on behalf of the Government of Zimbabwe hereby invites commercial banks, building societies, POSB (People’s Own Savings Bank) and IDBZ (Infrastructural Development Bank of Zimbabwe) to subscribe to Government Treasury Bill Tender amounting to $500 million,” said the Apex Bank.

The TBs, which will be allotted to successful bidders today, has special features including prescribed asset status, liquid asset status, tax exemption and acceptability as collateral for overnight accommodation at the central bank. Allotment will be at weighted average rate while interest rate on the TBs is calculated at an ‘open tender’ on a yield basis.

“Applications must be for a minimum amount of $1 million. The number of bids per investor is restricted to two and copies of the application forms are available from RBZ local dealers,” said the monetary authority. RBZ stated that applications should be clearly marked ‘Zimbabwe Government 270-day and 364-day Treasury Bills’. The Chronicle