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GOVT BOND AUCTION RAKES IN E168M

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MBABANE – The State’s E150 million infrastructure bond raked in over E160 million. The Central Bank of Swaziland (CBS) auctioned a 10-year floating coupon rate infrastructure bond on behalf of government where E150 million was on offer.


The auction was held on March 26, 2018 settling on March 29, 2018.
The bond will mature on March 29, 2028. The coupon rate was set at prime minus 50 basis points (currently 10 per cent) per-annum payable semi-annual.


CBS Governor Majozi Sithole reported that total bids received amounted to E168.4 million resulting in a bid-cover ratio of 112.3 per cent.
“Of the bids received, E168 million was competitive while E0.4 million was on the non-competitive category. Total bids allotted amounted to E130.4 million resulting to an allotment ratio of 87 per cent; of which the full competitive bids amount of E130.00 million was allotted to NBFIs (Non-Bank Financial Institutions with the remaining E0.4 million allotted to individuals,” said Sithole.


The governor said 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.
The results presented by CBS followed a trend where another government E150 million bond was also over-subscribed by slightly above E47 million.   


This was during the auction of 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.

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