High investors’ appetite on the facility which is expected to mature the 19th of January 2027 is a positive sign that there is sufficient liquidity in the market to the key investors in government securities which include pension funds, insurance firms, some microfinance companies and few commercial banks.
The previous 10-year debt instrument auctioned in November last year, attracted few bids, ending up undersubscribed.
Funds raised from the sale of the long-term debt government securities are intended to finance development projects like road and railway infrastructures that are necessary in cutting down transport cost. The long term debt instrument attracted bids 127.94bn/- compared to 111.28bn/-offered to the market for bidding.
The Bank of Tanzania (BoT) auction summary shows, however, that the government retained only 87.67bn/-as successful amount. The weighted average yield to maturity increased to 18.56 per cent compared to 18.33 per cent session held in November last year.
The weighted average coupon yield also made slight increase to 16.80 per cent compared to 16.60 per cent of the previous session. The weighted average price for successful bids decreased to 68.09 compared to 68.90.
The minimum successful price/100 was 67.01 to 68.00 of the preceding session. A total of 57 bids emerged successful out of 79 received. The highest bid offered at the auction was 74.15 while the lowest was 57.95.
Daily News
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