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Auction of New Benchmark Three-Year Government of Mauritius Treasury Notes

04 October 2017

Pursuant to the issuance plan dated 13 July 2017 and in accordance with section 5 of the Public Debt Management Act 2008 and section 57 of the Bank of Mauritius Act 2004, the Bank of Mauritius is pleased to announce the auction of a New Benchmark Three-Year Government of Mauritius Treasury notes maturing on 13 October 2020 through an auction to be held on Wednesday 11 October 2017, for a nominal amount of Rs1,600 million for settlement on Friday 13 October 2017.

 

2. The Bank will receive bids from Primary Dealers for this auction on the same day, i.e. Wednesday 11 October 2017, on a yield basis quoted to two decimal places, in multiples of Rs100,000. Primary Dealers may submit, for their own account up to a maximum of five bids, one for each bid yield, which, however, should not exceed the tender amount in the aggregate.

 

3. Bids must be submitted before 10.00 a.m. on Wednesday 11 October 2017. Bids received after the prescribed time and date will not be considered.

 

4. The results of the auction will be announced on the same day. Successful bidders will be required to effect payment of the cost price of the Treasury Notes through the Mauritius Automated Clearing and Settlement System (MACSS) at latest by 11.00 a.m. on Friday 13 October 2017. Payment of maturity proceeds and interests accruing on the Bonds by the Bank will also be made through the MACSS.

 

5. 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 11 October 2017. Bidders whose accepted bids carry yields lower than the coupon rate will be required to pay a premium (over and above the face or nominal value). Successful bidders will in any case receive the yield that they specified in their bids. 

 

6. The Treasury Notes will be issued dated 13 October 2017 and will mature and be redeemed at par by the Bank of Mauritius on 13 October 2020. The Bank may, at its discretion, allow the Treasury Notes   to be redeemed or converted into other instruments at market rates prior to maturity.

 

7. Interest on these Treasury Notes will be paid half-yearly on 13 April and 13 October by the Bank during the currency of the Treasury Notes to the bank account of the registered holder(s). Interest will accrue on the Treasury Notes as from 13 October 2017 on the nominal amount allotted and will cease on the date of their maturity.

 

8. The Treasury Notes will be issued in Book-Entry form and records will be kept at the Bank of Mauritius. The Bonds may be freely traded and are transferable from one investor to another in multiples of Rs100,000.

 

9. The Bank of Mauritius reserves the right to accept or reject any bid either in full or in part, without assigning any reason in respect thereof.