Africa-Press – Namibia. INVESTORS in Namibian government bonds have for the first time this year undersubscribed to several bonds, especially those that are normally popular on this week’s N$215 bond auction.
Despite this, the central bank still managed to sweep the market of more cash and got its N$215 million quota by allocating more on oversubscribed bonds.
Yesterday’s auction saw the state trying to raise N$175 million through fixed-rate bonds and N$40 million through inflation-linked bonds, but the picture of bids appears to be changing at the turning of the tide.
About N$215,9 million was raised from the auction, most of which had inflation-linked bonds rescuing the fixed-rate bonds by over N$1,6 million.
Of the bids received, popular bonds during the year such as the GC32, GC35, GC37 and the GC40 were all undersubscribed by a combined N$31,8 million.
The state wanted to raise at least N$70 million from the above four bonds, but investors did not show much interest.
The GC40 was poorly subscribed. On offer was N$20 million, and only N$5 million was received.
On auction were the GC26, GC28, GC32, GC35, GC37, GC40, GC43, GC45, GC48 and the GC50 bonds, with the GC50 being the most allocated by N$17 million.
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Despite this, the central bank still managed to sweep the market of more cash and got its N$215 million quota by allocating more on oversubscribed bonds.
Yesterday’s auction saw the state trying to raise N$175 million through fixed-rate bonds and N$40 million through inflation-linked bonds, but the picture of bids appears to be changing at the turning of the tide.
About N$215,9 million was raised from the auction, most of which had inflation-linked bonds rescuing the fixed-rate bonds by over N$1,6 million.
Of the bids received, popular bonds during the year such as the GC32, GC35, GC37 and the GC40 were all undersubscribed by a combined N$31,8 million.
The state wanted to raise at least N$70 million from the above four bonds, but investors did not show much interest.
The GC40 was poorly subscribed. On offer was N$20 million, and only N$5 million was received.
On auction were the GC26, GC28, GC32, GC35, GC37, GC40, GC43, GC45, GC48 and the GC50 bonds, with the GC50 being the most allocated by N$17 million.
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