Home
For My Business
Treasury and Trade
Treasury Bills and Bonds
 
Home
For Me
For My Business
For Corporates
Private Clients
Calculators
Rates + Pricing
About FNB + Legal
Contact Us + Tools
Careers at FNB

Close

Find a branch

Close

Find an ATM

Close

Daily Banking

Close

Tools

Register Forgot Username or Password Verify payments Webroot®

Close

Menu

Bank Lifestyles Services Bank better

Switch to FNB

Do it now!

Transact

DigiPlus Account Cheque accounts + overdrafts Credit cards Transactional savings accounts Youth Account Student Account eWallet

Ways to bank

Digital Banking Branch + ATMs Contactless card Cash Plus

Savings + Investments

Overview

Borrow

Personal loan FirstFunding employee loan scheme Tertiary loan Graduate loan Home loan Vehicle and Asset Finance

Foreign exchange solutions

Travel Investments

Rewards

Rewards

Financial planning

Overview

Switch to FNB

Do it now!

Services

inContact First Pay Cashback

Switch to FNB

Do it now!

Lifestyles

Youth accounts Islamic Banking

Switch to FNB

Do it now!

Bank better

Cheque security Tips on saving fees Money Management

Close

Switch to FNB

Do it now!

Transact

Business Accounts Commercial Transact Account Business debit card eWallet bulk payments Merchant Services Ways to bank

Savings + investments

Overview

Borrow

Business Credit Card Overdraft Business loan Commercial property finance Vehicle and Asset Finance Purchase order finance Corporate finance Premium credit

Insure

FNBB Mogwebi Insurance

Forex + trade

Payment solutions Imports and exports

Value adds + rewards

Instant Accounting Solutions inContact Pro Custody services

Industry expertise

Agriculture Public sector Treasury

Corporate

RMB Botswana

Close

Calculator

Budget calculator Credit card budget calculator Vehicle finance calculator Future value calculator Loan investment calculator Projected value of savings plan calculator

Close

Rates + pricing

Monthly interest rates Foreign exchange rates Pricing guide FNB Botswana Share Price

Close

Terms + conditions

Product terms and conditions Legal matters

About us

World of FNB

News + Insights

Press Office Accounting policies Annual reports Financial reports

Close

Talk to us + important numbers

For me For my business Environmental queries

Fraud + Disputes

Security Centre

Locators

ATM Locator Branch Locator

Tools

Software Downloads Verify Account Confirmation/Visa Application Letters Statement Glossary Verify Statements

Close

Close

Find a branch

Close

How to calculate the return on investment

Using the example below, where the Treasury Bill discount rate is 61.90%, the price translates to 99.938.

BOND NAME ANNUAL INTEREST RATE(COUPON) MATURITY DATE YIELD TO MATURITY(YTM) PRICE PER 100
TBILL 10 JUN 2015 1.90% 99.938

The investor will pay (P10 000.00 x 99.938%) = P9, 993.80.

On maturity the investor will receive P10 000.00. The difference of P6.30 will represent the return on the Treasury Bill investment.

Close

How to calculate the return on investment

The example below shows the six Bonds and Treasury Bills currently on issue by the Botswana Government.

BOND NAME ANNUAL INTEREST RATE(COUPON) MATURITY DATE YIELD TO MATURITY(YTM) PRICE PER 100
TBILL 10 JUN 2015 1.90% 99.938
TBILL 09 SEP 2018 2.70% 99.244
BW003 10.25% 31 OCT 2015 3.60% 103.54208
BW005 10.00% 12 SEP 2018 4.55% 118.57660
BW007 8.00% 10 MAR 2025 5.65% 119.20236
BW008 7.75% 08 SEP 2020 5.20% 113.35204
BW010 7.75% 14 MAR 2015 4.30% 107.48475
BW011 7.75% 10 SEPT 2031 5.95% 120.27788

NB. Interest or coupons are paid out semi-annually and are fixed. Prices and yields will vary daily and over time.

  • Assume an investor buys P10 000.00 of the BW003 bond maturing on 31/10/2015 with a yield to maturity of 3.60%
  • This will translate to a price of 103.54208.
  • The investor will pay P10 000.00 x 103.54208%= P10 354.21.
  • Every six months the bond is held and on the coupon dates the investor will receive (P10 000.00 x 10.25% x 1 82.5days)/365 = P512.50.

If the bond is held to maturity, the investor will receive P10 000.00 plus P512.50 on 31/10/2015. This excludes all the other coupons they would have received before the bond matured.

Close

Government Bonds explained

  • Bonds are debt instruments where the borrower - in this case the Government of Botswana - issues paper to the market where interested investors buy the paper for a specifc return.
  • A bond will typically have a maturity date sometime in the future, and an interest rate (also referred to as a coupon) that is payable at certain intervals during the year.
  • Bonds trade on a yield to maturity basis (YTM). The YTM is calculated based on current and expected future interest rate movements for a particular investment period.
  • This YTM is then translated to a price for that bond. That price is the amount an investor would pay for the bond.
  • Bond prices vary during the life of the bond. The variations are a function of current and expected future interest rate movements.
  • Because of this, capital investments or capital values of a bond investment will vary during the life of the bond, particularly if the bond is sold before maturity.
  • An investor in bonds may gain or lose capital on the investment, depending on the movements of interest rates between the time the bond was bought and the time it was sold.
  • However, if the bond is held to maturity, the investor will receive the full nominal value of the bond.

The example below shows the six Bonds and Treasury Bills currently on issue by the Botswana Government.

BOND NAME ANNUAL INTEREST RATE(COUPON) MATURITY DATE YIELD TO MATURITY(YTM) PRICE PER 100
TBILL 10 JUN 2015 1.90% 99.938
TBILL 09 SEP 2018 2.70% 99.244
BW003 10.25% 31 OCT 2015 3.60% 103.54208
BW005 10.00% 12 SEP 2018 4.55% 118.57660
BW007 8.00% 10 MAR 2025 5.65% 119.20236
BW008 7.75% 08 SEP 2020 5.20% 113.35204
BW010 7.75% 14 MAR 2015 4.30% 107.48475
BW011 7.75% 10 SEPT 2031 5.95% 120.27788

NB. Interest or coupons are paid out semi-annually and are fixed. Prices and yields will vary daily and over time.

  • Assume an investor buys P10 000.00 of the BW003 bond maturing on 31/10/2015 with a yield to maturity of 3.60%
  • This will translate to a price of 103.54208.
  • The investor will pay P10 000.00 x 103.54208%= P10 354.21.
  • Every six months the bond is held and on the coupon dates the investor will receive (P10 000.00 x 10.25% x 1 82.5days)/365 = P512.50.

If the bond is held to maturity, the investor will receive P10 000.00 plus P512.50 on 31/10/2015. This excludes all the other coupons they would have received before the bond matured.

Treasury Bills and Bonds

First National Bank Botswana offers customers an opportunity to invest in Botswana Government issued Bonds and Treasury Bills.

Government Bonds explained
Call me back

Government Bonds explained

  • Bonds are debt instruments where the borrower - in this case the Government of Botswana - issues paper to the market where interested investors buy the paper for a specifc return.
  • A bond will typically have a maturity date sometime in the future, and an interest rate (also referred to as a coupon) that is payable at certain intervals during the year.
  • Bonds trade on a yield to maturity basis (YTM). The YTM is calculated based on current and expected future interest rate movements for a particular investment period.
  • This YTM is then translated to a price for that bond. That price is the amount an investor would pay for the bond.
 
Treasury Bills explained

Treasury Bills explained

Treasury Bills trade on a discount yield basis. Currently there are two Treasury Bills in issuance by government.

Treasury Bills do not have a coupon or interest rate like Bonds.

 
Bonds + Treasury Bills in issue

Getting it made easy

Treasury Bills and Bonds

Qualifying criteria

  1. These investment opportunities are available to FNB customers. All payments will be handled through a customer's account at any FNB branch.
  2. All retail investors will open a custody account with FNB for safe keeping of their investments and to facilitate coupon payments.
  3. All investments shall have a minimum denomination of P10 000 and incremental values in multiples of P500.
  4. There is a custody charge of P100 minimum or 0.07% of nominal value - whichever is lower, per year.

Ways to apply

Call me back

Other ways to apply

Contact us

Find a branch

Documents needed

Non-FNB customers will have to meet all KYC (know-your-customer check done by the bank) requirements before any transaction is done on their behalf.

Back to top
First National Bank of Botswana Limited - Registration number BW00000790476.