THE Reserve Bank of Zimbabwe (RBZ) is seeking to raise $400 million through the issuance of 270-day Treasury Bills to fund Government programmes and cashflow management.
The Central Bank floated the tender, which was closed yesterday, through a public notice issued last Friday where it invited bidders from the financial services sector to subscribe to the TBs.
“RBZ on behalf of the Government of Zimbabwe hereby invites commercial banks, building societies, POSB (People’s Own Savings Bank) and IDBZ (Infrastructural Development Bank of Zimbabwe) to subscribe to Government Treasury Bill Tender amounting to $400 million,” said the monetary authority.
The TBs, which were allotted to successful bidders yesterday, have special features including prescribed asset status, liquid asset status, tax exemption and acceptability as collateral for overnight accommodation at the central bank.
Allotment was at weighted average rate while interest rate on the TBs was calculated at an ‘open tender’ on a yield basis.