Tweet
Finance ministry raises near $5b on 30 year, fixed rate bond
Wednesday, June 24, 2009
The finance ministry managed to raise close to $4.8 billion on a 30-year fixed rate bond that it floated last week at an interest rate only 1.5 percentage points higher than the latest one-year investment debenture.
The lastest one-year debenture raised $3.9 billion.
Last Monday, the finance minstry opened the tender for the 30-year bond to carry a fixed rate of 23.75 per cent even while opening tender on the one-year investment debenture which will carry a fixed rate of 22.25 per cent.
The offer on both instruments closed on Friday.
Interest payments on the 30-year bond are to be made quarterly while the one-year debenture will pay out interest after six months.
Interest rates have been steadily declining since the start of 2009.
The benchmark rate set by treasury bills have declined from 22.01 and 24.45 per cent on three- and six-month t-bills in December 2008 to 19.21 and 21.08 per cent in May.
The average yields in May were 61 basis points (bps) and nine bps lower than the respective yields on three-month and six-month t-bills in April.
Wednesday, June 24, 2009
The finance ministry managed to raise close to $4.8 billion on a 30-year fixed rate bond that it floated last week at an interest rate only 1.5 percentage points higher than the latest one-year investment debenture.
The lastest one-year debenture raised $3.9 billion.
Last Monday, the finance minstry opened the tender for the 30-year bond to carry a fixed rate of 23.75 per cent even while opening tender on the one-year investment debenture which will carry a fixed rate of 22.25 per cent.
The offer on both instruments closed on Friday.
Interest payments on the 30-year bond are to be made quarterly while the one-year debenture will pay out interest after six months.
Interest rates have been steadily declining since the start of 2009.
The benchmark rate set by treasury bills have declined from 22.01 and 24.45 per cent on three- and six-month t-bills in December 2008 to 19.21 and 21.08 per cent in May.
The average yields in May were 61 basis points (bps) and nine bps lower than the respective yields on three-month and six-month t-bills in April.