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Oliver Kazunga, Senior Business Reporter

THE Reserve Bank of Zimbabwe (RBZ) has issued another batch of Treasury Bills seeking to raise $300 million to finance Government programmes. 

Treasury Bills (TBs) are negotiable instruments issued by Government through the Reserve Bank to finance the State’s short-term requirements. In a notice yesterday, the Apex bank said it was inviting financial institutions to subscribe to the 182-day Treasury Bills (TBs) amounting to $300 million.

“RBZ on behalf of the Government of Zimbabwe hereby invites financial institutions including commercial banks, building societies, POSB (People’s Own Savings Bank), and IDBZ (Industrial Development Bank of Zimbabwe) to subscribe to Government Treasury Bill tender amounting to $300 million.

“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, 80 Samora Machel Avenue, Harare,” it said.

The offer for the debt instrument opens and closes today. 

“The TBs, which will be allotted to successful bidders have special features including prescribed and liquid asset status, tax exemption and acceptability as collateral for overnight accommodation at the Central Bank.

Other special features include tradability and allotment that will be at weighted average rate. In recent months, RBZ has been issuing TBs worth different amounts through an auction system to finance Government programmes.

Last year, the Government moved to sanitise the issuance of TBs by reverting to an auction system. Government last carried out efforts to raise funding requirements by way of auctioning TBs in 2012. 

TBs have varying maturities, and the “test” TBs had 91-day, 182-day and 365-day maturities at interest rates of 16,5 percent, 19,6 percent and 17 percent, respectively. In 2018, Treasury placed a suspension on the issuance of TBs, as there were concerns that the market had become flooded. — @okazunga