Malawi has cancelled a five-year bond worth 5 billion kwacha due to poor subscription, the Reserve Bank of Malawi (RBM) said on Monday.
"RBM regrets to advise that issuance of a five-year Malawi government K5 billion Treasury note...has been withdrawn due to poor subscription," the central bank said in a statement.
Local investment firms had said the bond, which had been at a fixed rate of 12.5 percent, would increase the investment platform especially for pension funds which own more than two-thirds of the funds on the market.
Currently the government raises money from 30 day, 181 day and 272 day-Treasury Bills, whose average rate of return of 9 percent have been decreasing.
The bond had been intended to try to mop up excess liquidity stemming from large donor funds.
Malawi recently switched diplomatic ties to China, dumping Taiwan after 41 years. China was reportedly going to provide some $6 billion in aid to Malawi, one of Africa's poorest countries.
Monday, 4 February 2008
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment