Bank of Mauritius offers government bonds under auction to be held on Oct 29
The central bank announced the sale of Fifteen-Year Government of Mauritius Bonds for a nominal amount of Rs 1.40 billion on October 29, 2014 for settlement on October 31, 2014. (Image: Fundweb)
Mauritius’ central bank announced the results of the auction from seven accepted bids through the auction of Five-Year Government of Mauritius Bonds for a nominal value of Rs 1.12 billion, issued on October 24, 2014.
In all, 38 bids were received by the Bank of Mauritius (BoM) at a total nominal value of Rs 4.55 billion with highest and lowest yield of 4.90% and 4.00% respectively per annum.
The bank accepted seven bids with highest yield of 4.32% p.a and the yield was weighted at 4.30% p.a and the weighted price was 103.796%.
The coupon rate for this auction was set at a highest accepted yield of 4.32% per annum.
Besides, the central bank announced the sale of Fifteen-Year Government of Mauritius Bonds for a nominal amount of Rs 1.40 billion on October 29, 2014 for settlement on October 31, 2014.
In case of oversubscription, the bank announced that it may accept bids for amounts higher than Rs 1.40 billion.
The bank will receive bids for this auction on the same day, that is October 29, 2014, on a yield basis quoted to two decimal places, in multiples of Rs100000, and on tender forms which are obtainable at its seat or on its website.
Bidders are requested to submit, for their own account, up to a maximum of five bids, one for each bid yield not exceeding the tender amount in aggregate, as well as submit bids for the account of each of their customers on the same conditions, while banks may submit their bids through the Reuters Dealing System.
The communiqué highlighted that all Tender Forms must bear the official stamp of the institution submitting the bid.
Banks or licensed stockbrokers offering these services must be contacted for applications from individuals and non-financial institutions.
Individuals may submit applications in their own names or jointly with another individual and must produce their National Identity Cards and a Utility Bill, for example CWA, CEB, telephone bills as proof of address.
However, legal guardians must represent minors and they should produce the original of their birth certificates.
The completed Tender Form for this auction should reach the tender box at the Banking Hall of the Bank of Mauritius Tower before 10.00 a.m. on October 29, 2014.
The results of the auction will be announced on the same day and successful tenderers will be required to collect their letter of acceptance from the Bank and effect payment of the cost price of the Bonds through the Mauritius Automated Clearing and Settlement System (MACSS) at latest by 11.00 a.m. on October 31, 2014.
Payment of maturity proceeds and interests accruing on the Bonds by the Bank will also be made through the MACSS.
The Bank may allow the Bonds to be redeemed or converted into other instruments at market rates prior to maturity.
The coupon rate for this auction will be set equal to or higher than the lowest accepted yield of the auction to be held on Wednesday October 29, 2014.
Concerning the interest on these bonds, they will be paid half-yearly on 30th of April and 31st of October by the bank during the currency of the bonds to the bank account of the registered bondholder(s) or any other person authorised by the bondholder(s).
Until the date of the bonds’ maturity, interest will accrue on the Bonds as from October 31, 2014 on the nominal amount allotted.
It may be noted that the bonds will be issued in Book-Entry form and BoM will keep all the records.
Finally, it was noted in the communique by BoM that the bonds may be freely traded and are transferable from one investor to another in multiples of Rs 100000.