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GOVT RAISES E851.6M THROUGH BONDS IN Q1

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MBABANE - A total of E851.6 million was raised through government bond issuance during the quarter ended March 2024.

The central bank which issues bonds on behalf of government reported that of this total, E616.6 million was raised through public auctions and E235.0 million through private placements.
Bonds are issued by governments and corporations when they want to raise money. By buying a bond, you are giving the issuer a loan, and they agree to pay you back the face value of the loan on a specific date, and to pay you periodic interest payments along the way, usually twice a year. Both public and private auctions were undertaken through the Plain Vanilla bond programme, following the indefinite suspension of the Suppliers bond programme at the end of the first half of the 2023/24 financial year.

Two Plain Vanilla bond auctions were held during the quarter under review, in January and March 2024, wherein four benchmark bonds were simultaneously issued. These were the fifth and sixth reopening of the four benchmark bonds SG075, SG076, SG077 and SG078. The 3-year bond SG075 was not offered in March 2024 due to high outstanding balances under this security. In the January 2024 auction, a total of E400 million was offered and allotments made amounted to E449.54 million representing all bids received, indicating an overall subscription and allotment rate of 112.0 per cent. In the March 2024 auction, a total of E150 million was offered and a total of E167.02 million was received and fully allotted, resulting in subscription and allotment rate of 111.0 per cent.

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