Government of Zimbabwe is set to raise ZWL$ 2.1 Billion through Treasury Bills (TBs) in order to finance its programs and Cash flow Management.
TBs are financial instruments issued by the government into the market to raise funds for public spending and are often deemed secure.
The Reserve Bank of Zimbabwe (RBZ) has since published a notice for the issuance of the TBs which have 270-day tenure on a yield basis.
“The Reserve Bank of Zimbabwe (RBZ) on behalf of the Government of Zimbabwe hereby invites Commercial Banks, Building Societies, POSB and IDBZ to subscribe to Government Treasury Bill Tender amounting to Two Billion One Hundred million dollars (ZW$2,100,000,000.00),’ the RBZ said.
“Applications must be for a minimum amount of One million Zimbabwe dollars (ZW$1,000,000.00). The number of bids per investor is restricted to two (2).”
Its features include, prescribed Asset Status, liquid Asset Status, Tradability, Tax Exempted, and Acceptable as collateral for overnight accommodation by the RBZ and Allotment will be at weighted average rate.
Government is currently pursuing various developmental and infrastructural projects across the country which includes construction of roads, dams and power generation.
Furthermore, government is faced with funding a population census next month and a general election set for next year which will also need a great deal of funding for preparation.
