The Bank of Botswana will seek P3.1 billion from domestic investors on September 24, taking government securities financing past the halfway mark for the 2026/27 financial year, although Treasury bill issuance has already reached its annual target while bond sales remain behind schedule.
The central bank will offer P1 billion in three-month bills, P1.5 billion in six-month bills and P600 million in reopened bonds maturing in 2029, 2043 and 2050. The auction is the sixth of 2026/27 and the first under the expanded P85 billion Note Programme.
Government plans to raise P12 billion through securities this financial year, comprising P2 billion in net Treasury bills, P4 billion in short-dated bonds and P6 billion in longer-dated and inflation-linked bonds.
Five auctions between April and August raised P18.4 billion gross. After accounting for P13.4 billion in maturing Treasury bills, net securities financing stood at about P5 billion, equivalent to 42 percent of the annual target.
Treasury bills accounted for P15.4 billion of gross issuance, with their net increase reaching about P2.02 billion by August, effectively exhausting the annual target.
Bond issuance has been slower, with about P3 billion sold, or 30 percent of the P10 billion annual target. Short-dated bonds contributed only P431 million against a P4 billion target, while longer maturities raised P2.6 billion against P6 billion.
If September’s auction is fully allotted, net securities financing could reach about P6.46 billion, or 54 percent of the annual target.
Funding conditions have nevertheless improved, with three-month Treasury bill yields falling from 10.71 percent in April to 6.34 percent in August, while six-month yields declined from 11.02 percent to 6.50 percent.