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Govt borrows N$1,7 billion this week


THE Bank of Namibia this week borrowed N$1,7 billion on behalf of the state through bonds and treasury bills.

This is slightly less than what was on offer for the week as the state intended to sweep N$1,9 billion from the market.

The shortfall came from treasury bills, which were undersubscribed on some instruments, but were oversubscribed in total.

The state wanted to borrow N$215 million through bonds and N$1,7 billion through treasury bills.

Bonds were overallocated and oversubscribed by N$40 million, and N$479 million respectively, while treasury bills were underallocated by N$238 million.

On auction were the GC26, GC28, GC32, GC35, GC37, GC40, GC43, GC45, GC48 and the GC50 bonds, with the GC26 being allocated the most with N$19 million.

The central bank announced that new index ratios are applicable for the calculation of coupon payments due on 15 October for government inflation-linked bonds – the GI22, GI27 and GI33.

The new index rations are 1,3896214 for the GI22, 1,0812572 for the GI27, and 1,1874052 for the GI33.

These are all on a reference consumer price index of 155,387335.

More information on how to trade bonds and treasury bills is available from the Bank of Namibia.





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