Oliver Kazunga, Senior Business Reporter
THE Reserve Bank of Zimbabwe (RBZ) is seeking to raise $500 million through the issuance of Treasury Bills to fund Covid-19 pandemic expenditure by Government.
The highly infectious disease was detected in the country in March this year after the first outbreak in China last December. So far, the pandemic has spread across the world leaving millions infected and thousands dead.
In a public notice the RBZ invited bidders from the financial services sector to subscribe to the TBs tender.
“RBZ on behalf of the Government of Zimbabwe hereby invites commercial banks, building societies, POSB (People’s Own Savings Bank) and IDBZ (Infrastructural Development Bank of Zimbabwe) to subscribe to Government Treasury Bill Tender amounting to $500 million,” said the Apex Bank.
The TBs, which will be allotted to successful bidders tomorrow (Friday 3 July 2020), has special features including prescribed asset status, liquid asset status, tax exemption and acceptability as collateral for overnight accommodation at the central bank.
Allotment will be at weighted average rate while interest rate on the TBs is calculated at an ‘open tender’ on a yield basis.
“Applications must be for a minimum amount of $1 million. The number of bids per investor is restricted to two and copies of the application forms are available from RBZ local dealers,” said the monetary authority.
RBZ stated that applications should be clearly marked ‘Zimbabwe Government 270- day and 364-day Treasury Bills’.