By: Nghiinomenwa-vali Erastus
In a recent Treasury Bills auction conducted by the Bank of Namibia, the government found itself flooded with investor interest, receiving N$2.8 billion in offers when it sought only N$1.3 billion.
This oversubscription left an additional N$1.8 billion in capital without immediate allocation, as revealed by the auction results.
To meet the borrowing target of N$10.7 billion for the 2023/24 fiscal year, the Finance Ministry issued three treasury bills aiming to raise N$1.3 billion.
Despite the offered amount being below N$400 million, all three treasury bills attracted substantial investor interest, resulting in oversubscription.
The first treasury bill, with a 91-day maturity, aimed to raise N$350 million.
During the auction, it received 17 bids totaling N$642.8 million, nearly doubling the target and showcasing a bid-to-cover ratio of 1.8.
However, the government only borrowed the initial N$350 million.
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