429.50% Subscription Rate in Latest Treasury Bond Auction

TLDR

• On August 5, the Bank of Tanzania offered 289.93bn/- through the reopening of a 25-year treasury bond carrying a 13.25 per cent annual coupon.
• The minimum successful price increased to 113.7770 from 109.2979 in the June auction.
• Under the corporate action, each existing share will be subdivided into ten ordinary shares, increasing the bank’s listed shares from 500 million to five billion.
• The strength of demand for government securities was already evident in the latest treasury bond auction.
• For fixed-income investors, the strong treasury bond subscription and the opening of the market to global investors provide a constructive backdrop.