Zimbabwe sells debt to selected investors

Zimbabwe sells debt to selected investors
Published: 27 November 2013
The Government has raised $42,5 million by selling debt of up to one year's duration to selected investors after public Treasury Bill sales by the central bank failed, a Finance Ministry official said.

About $20 million of the notes were bought by an insurance company through the private placement with the rest coming from four banks, the person said, asking not to be identified because the transactions haven't been made public.

He also declined to name the financial institutions or say why the money is being raised.

In October last year the Reserve Bank of Zimbabwe began a series of failed Treasury Bill auctions.

Those debt sales were the first in the country since 2008, just before the adoption of the multicurrency regime.

The duration of the debt sold is 180 days to one year with yields of 7 percent to 10 percent, the person said. Zimbabwe's annual inflation rate was 0,59 percent in October.

Finance Minister Patrick Chinamasa and his deputy Samuel Undenge weren't available for comment.

- Bloomberg


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