Africa-Press – Namibia. WHILE some struggle to make ends meet after the festive season – investors this week offered the Bank of Namibia (BoN) N$1,9 billion for treasury bills.
This is the first auction of the year – and on offer were 91-day (N$550 million) and 364-day (N$600 million) treasury bills. The offer of N$1,9 billion is significantly more than the N$1,15 billion the central bank was seeking to borrow on behalf of the treasury – still indicative that government securities continue selling like hot cakes.
Government securities last year returned an average of 4,7%. More borrowing is yet to happen before the current fiscal year closes, as well as an anticipated N$929 million redemption of the GC22 government bond.
This bond matures on 15 January, and investors will be paid out on 17 January. The GC22 has been paying an 8,75% coupon rate. Towards the end of the month the central bank will switch the inflation-linked bond, which will expire in October.
This bond has a running balance of N$1,9 billion. Total tradable government debt yesterday stood at N$99 billion.
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