Africa-Press – Eswatini. The E200 million government bonds auction is set to take place tomorrow.
The issuance of bonds by the Central Bank of Eswatini, on behalf of the Government of Eswatini, is at a fixed coupon rate of 10.00, 10.25, 10.50 and 11.00 per cent respectively. This presents an investment opportunity from as little as E10 000 for individual non-competitive bidders and E1 000 for institutional direct bidders. According to the central bank, the bonds will be issued using the competitive multiple bid auction, model and is open to the public including individuals, corporate and institutional investors. All investors should apply through the Primary Dealers, who are the four local commercial banks. The purpose of the issuance is to develop the secondary market, establish a fair market price, which will compensate both the borrower and investors for interest rate risks and to facilitate financial intermediation, while also meeting government budgetary requirements.
Markets
The applicable pricing supplements and other relevant documents pertaining to the issuance is available for viewing at the Financial Markets Department of the Central Bank of Eswatini, situated on the 3rd Floor, Umntsholi Building in Mbabane, as well on the central bank website: www.centralbank.org.sz. The CBE stated that auction results would be made available immediately after the auction. It was further mentioned that successful bidders, who fail to honour their obligations on time, would be disqualified from participating in one subsequent bond auction.
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