The Federation of Bosnia and Herzegovina plans to issue treasury bills in the total amount of 40 million BAM. The auction will be held on October 20 at the Sarajevo Stock Exchange, and the maturity date is nine months. This is stated in the public invitation to participate in the show.
The nominal value of one treasury bill is 10,000 BAM. The issue bears the temporary symbol FBHTZ526, and the notes read convertible marks.
The auction on the primary market starts at 9 a.m., and purchase orders are accepted until 10 a.m. The multiple price method will be used and the notes are sold at a discount price. This means that customers pay less than the nominal value, and receive the full amount at maturity.
The report on the results of the auction will be published on the same day by 4 pm. It will be published by the Federal Ministry of Finance, the issuing agent and the Sarajevo Stock Exchange on their websites.
Customers with whom transactions are concluded must pay the money to the deposit account of the Ministry by October 21 at 12 noon. The Treasury bills mature on July 21, 2027.
Treasury bills are short-term debt securities with a maturity of up to one year. Governments issue them when they need money in a short time, usually to bridge the difference between inflows and outflows in the budget. They are sold at a price lower than the nominal value, and upon maturity the issuer pays the buyer the full nominal value.
That difference is the investor’s earnings. Notes are most often bought by banks, insurance companies and investment funds, because they consider them a safe investment.
