Government secured ¢1.24 billion from the sale of the 6-year bond issuance, which was oversubscribed by 24%.
This is coming after an improved demand for the sale of Treasury bills, following fluctuation in the short term debt instrument in recent times.
Joy Business learnt that the interest rate of 18.80%t was within the prevailing market condition, but at the upper end.
The funds secured is expected to finance part of this year’s budget and settle some maturing debts.
Analysts say the market has been favourably conditioned, in the past few weeks, with some demand and lower interest rate expectations.
The 6-year bond was opened to both resident and non-resident investors.
Absa, Black Star, CalBank, Databank, Ecobank, Fidelity, GCB, IC Securities and Stanbic were the active bond market specialists.
Government 7-year bond in June oversubscribed marginally
The last time government issued a long term bond, it secured ¢1.86 billion from the sale of the 7-year bond, which replaced the 5-year bond.
The long term bond was marginally oversubscribed by 3.3%
At the same time, the interest cost of the debt instrument went down by 0.64% to 18.10%, saving government some significant interest payment.