BUY-BACKS: Payment for the repurchase bonds will be effected on a cash basis.
2.1 Participation: Buy-backs are effected on a voluntary basis. Only primary dealers are eligible to submit the bids.
2.2 The National Treasury reserves the right to buy back nothing or less than the announced amount if warranted by market conditions.
2.3 The National Treasury may hold a number of buy-back auctions of a particular bond over a period of time, if necessary.
2.4 Only bonds with a nominal outstanding of less than R1 billion will be considered for buy-backs.
2.5 Buy-backs will be conducted on a multiple-yield basis, where successful bidders will buy back at the yield they bid.
2.6 The bidding format would be that at 10:30, Primary Dealers would be allowed to submit bids of the repurchase bonds, which will be assessed against the price that would have been determined in advance by the National Treasury.
2.7 Settlement will be t+3 2.8 The National Treasury will periodically pre-announce the buy back auction dates.
Between 10:30 am and 11:00 am, the Primary Dealers will be allowed to offer bids in terms of yields of the bond(s) the National Treasury intends to buy back.
By 11:30 am the Reserve Bank will aim to publish the results of the buyback auction.
Phone : (012) 315 5456 e-mail : phakamani.hadebe@treasury.gov.