Auction of New Benchmark Three-Year Government of Mauritius Treasury Notes.
Under the section 5 of the Public Debt Management Act 2008, and section 57 of the Bank of Mauritius Act 2004, the Bank of Mauritius is happy to advertise the publishing of a New Benchmark Three-Year Government of Mauritius Treasury Notes that will be maturing on 27 July 2024 through an auction, which is to be held on this Thursday 22 July 2021, for a nominal amount of Rs2,500 million, for settlement on Tuesday 27 July 2021.
Instructions for the auction of the new Three-Year Government of Mauritius Treasury Notes
The Bank of Mauritius will accept bids from Primary Dealers for this auction on the same day, that is, Thursday 22 July 2021, on a yield basis, which will be quoted to two decimal places, and in multiples of Rs100,000. Primary Dealers may submit, for their own account, and up to a maximum of five bids, one for each bid yield, which, however, shall not surpass the tender amount in the aggregate.
Bids must be submitted on Thursday 22 July 2021 before 10.00 a.m. Bids submitted after the designated date and time will not be taken into consideration.
In the eventuality of oversubscription of the Treasury Notes, the Bank may accept a higher amount than the amount stated on the tender.
The results of the auction shall be announced on the very same day. Bidders who are successful will be required to proceed with the payment of the cost price of the Treasury Notes via the Mauritius Automated Clearing and Settlement System (MACSS) on Tuesday 27 July 2021 at the latest by 11.00 a.m. The payment of maturity proceeds and interests accruing on the Treasury Notes by the Bank will also be made through the same channel, that is, MACSS.
The coupon rate for this auction will be set equal to or higher than the lowest established yield of the auction which is to be held on Thursday 22 July 2021. The bidders whose accepted bids carry yields that are lower than the coupon rate will be required to pay a premium (over and above the face or nominal value). Bidders who are successful will, in any case, earn the yield that they specified in their bids.
The Treasury Notes will be issued dated 27 July 2021 and they will mature and can be redeemed at par by the Bank of Mauritius on 27 July 2024. The Bank may, at its own discretion, authorise the Treasury Notes to be reclaimed or converted into other instruments at market rates prior to their maturity.
The interest on these Treasury Notes shall be paid half-yearly every 27 July and 27 January by the Bank of Mauritius during the currency of the Treasury Notes to the bank account of the Primary Dealers. The interest will be accumulated on the Treasury Notes as from 27 July 2021 on the nominal amount allotted and will end on the date of their maturity.
The Treasury Notes will be issued in Book-Entry form, and records of the same will be kept at the Bank of Mauritius. The Treasury Notes may also be freely traded and are even transferable from one investor to another in multiples of Rs50,000.
The Bank of Mauritius reserves the right to accept or reject any bid either in part or in full, without prior assigning any reason in respect thereof.
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