GOVT BOND OVER SUBSCRIBED BY E47M

 MBABANE – Government’s E150 million bond was over-subscribed by slightly above E47 million.   

On behalf of the Government of the Kingdom of Swaziland, the Central Bank of Swaziland (CBS)  auctioned a seven -year bond where E150 million was on offer.
The auction was held on January 26, 2018 settling on January 31, 2018. The bond will mature on January 31 2025. The coupon rate was set at 10.0 per cent per annum (payable semi-annually).  

Total bids received amounted to E197.77 million resulting in a bid-cover ratio of 131.8 per cent.
“Of the bids received E197 million was competitive and E0.77 million was in the non-competitive category. Total allotments amounted to E149.23 million for competitive bidders whilst E0.77 million was allotted to non-competitive bidders, resulting in 100 per cent allotment ratio,” reported CBS.   

It was stated that in the month of January 2018, there were two bonds maturities. It was mentioned that both maturities fell due on 31 January 2018, one being E120 million under the suppliers’ bond programme and E146.3 million being a three-year bond under the Vanilla bond programme.

The three-year bond maturity was offset by the new issuance of the seven-year bond issued in the same month. While commercial banks continued to dominate participation in government securities on the shorter end of the yield curve, non-bank financial institutions dominate on the longer term securities.

Post your comment

Your name:

Your e-mail address:

Add your comments:

Please enter the code you see in the image:

Image:

Code: