State declines borrowing K1bn

Economic Development concept on the gearwheels, 3D rendering


GOVERNMENT on Friday declined to borrow about K1 billion through a bond auction that saw an oversubscription of K2.935.06 billion but only K1.935.85 was gotten. In the first government bond auction of the year, the State has maintained borrowing within its target range of K2.6 billion, thereby creating space for the private sector to borrow from the domestic market. According to the bond auction results of tender number one of 2022 released by the Financial Markets Department of the Bank of Zambia, both local and foreign (offshore) investors have continued showing increased appetite to invest in government securities. In the 15 years’ tenor, investors offered K99.62 million but only K54.82 million was borrowed, with K401.91 million being gotten from the K721.61 million offered in the 10 years’ tenor. In the seven years’ tenor, K362.07 million was offered at face value but only K208.07 million was allocated at cost, while K938.88 million was offered but Government only borrowed K639.75 in the five years’ tenor. Investor appetite to lend out to Government continued in the three years’ tenor, with K336.51 million being offered but only K224.31 million was borrowed, with K406.99 million being gotten in the two years’ tenor, for which investors offered K476.37 million. Meanwhile, the Kwacha ended the week on a depreciating streak due to a continued low supply of the United States (US) dollar, which is on high demand. In its treasury newsletter, Zanaco Plc states that the local currency has continued to hold a bearish position since the beginning of this year. “Friday morning saw market players quoting the local currency at K17.36 and K17.41 to the dollar and slowly trailed on CLICK TO READ MORE

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