Boa auctions 5 year treasury notes

TIRANA, Feb.5 – BoA held an auction on Wednesday for five-year treasury notes worth 4.0 billion leks ($41.7 million/32.2 million euro) on behalf of the Finance Ministry.
The T-notes are issued on February 9 and mature on February 9, 2012. The securities bear a floating coupon to be paid semi-annually – on August 9 and February 9.
Albania’s first-ever issue of five-year T-notes, auctioned last November, carries a 9.68 percent coupon. This determines the coupon of this year’s issue as well. The floating coupon of the bonds has the average yield of 12-month treasury bills reached in the last three auctions prior to the five-year bond issue, plus a margin set by the banks’ bidding in the auction of five-year government paper. For example the American Bank of Albania offered 8 percent for the customers who will invest in 5 year securities through ABA. The coupon is adjusted every year. BoA also reported that yields on the three-month Albanian Treasury bills fell in the Tuesday auction, as the issue was oversubscribed. It offered and sold 1.9 billion leks ($19.7 million/15.2 million euro) worth of three-month government paper as dealers placed bids worth of 3.4 billion leks. The T-bills produced a weighted average yield of 6.22 percent, down from a 6.32 percent weighted average yield in the previous auction of three-month paper held on January 30. BoA holds five-year T-notes auctions every three months. BoA holds weekly auctions of three-month T-bills and auctions six-month and 12-month T-bills twice a month. Two-year government securities are sold monthly while three-year T-notes every quarter.