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The Reserve Bank of Zimbabwe (RBZ)’s third Treasury Bills (TBs) auction meant to raise $100 million was oversubscribed by 400 percent after bids totalled $419 million.

The highest interest rate offered on the latest batch of the Government securities was 25 percent while the lowest was 12 percent, with the average rate coming in at 13,6 percent. The bills-a 92-day instrument issued on an “open tender on yield basis” interest rate, have other special features, which include prescribed and liquid asset status, tax exemption and acceptability as collateral for overnight accommodation at the RBZ.

According to figures from the central bank, the total TBs allotted amounted to $102 million, with the proceeds expected to fund a number of key Government programmes. Treasury’s first and second TBs auctions raised $30 million and $60 million, respectively. This means Government has raised just above $190 million since the TBs auction system resumed at the beginning of August 2019. This bodes well for Government’s plans to issue out an Infrastructure Bond later this year. — Business Reporter.