Government will Tuesday float Treasury Bills (TBs) worth ZWL$200m as it borrows from the domestic market to finance its programmes despite Treasury running surpluses.
The borrowing, which comes through the issuance of Treasury Bills by the Reserve Bank of Zimbabwe, comes after several attempts by the central bank last year to raise money for the same purpose through public auctions.
But, several commercial papers issued by the central bank last year were undersubscribed.
Treasury Bills tendered for ZWL$1.77bn in the latter half of 2019 yielded ZWL$794m.
The latest TBs, the first offering this year, have maturity tenure of 272 days and have “an open tender on a yield basis”.
The TBs are only restricted to Zimbabwe’s financial institutions.
“Applications must be for a minimum of ZWL$1m,” RBZ said.
“The number of bids per investor is restricted to two and the copies of the application will be available from the RBZ local dealers.
The TBs have special features including prescribed asset status, liquid asset status, tradable, tax exemption, acceptable as collateral for overnight accommodation by the RBZ and allotment will be at weighted average rate.
