Tanzania's Treasury bond auction successful

Mar 25, 2013

The latest Treasury bond auction in Tanzania has been successful, even exceeding government expectations, it has been revealed.

The latest Treasury bond auction in Tanzania has been successful, even exceeding government expectations, it has been revealed.

Results published this week by the Bank of Tanzania (BoT) show that the total amount tendered was oversubscribed by 32.53 per cent.

Demand for the ten year Treasury bonds has been high, with the auction generating a total of Sh72.89 billion (€34.8 million). This figure largely surpassed the Sh55 billion offered for bidding, which shows that markets are confident in the country's economic outlook.

The gradual decline of the annual headline inflation - reaching 10.4 per cent in February - is one of the factors behind the positive performance of the government securities, Tanzania Daily News reports.

The news source added that the government will use the funds generated by the auction for both short and long term investment purposes.

Several bond debts issued in Africa have been successful over the past few years, which helped African states and development institutions to leverage funds to pursue their activities, such as infrastructure development or small and medium-sized enterprise financing.

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