Investor guide
Invoice auctions explained: yield, price and competition
How competitive yield bidding can determine an invoice settlement price.
What an invoice auction is
An invoice auction presents a reviewed receivable to eligible investors for a fixed period. Investors compare the debtor, maturity, evidence and risk classification before submitting firm yield bids.
Why investors bid on yield
The annualised yield expresses the pricing rate proposed by an investor. It gives participants a consistent way to compare opportunities with different values and days to maturity.
How lower yield affects settlement price
A lower winning yield normally produces a smaller discount and therefore a higher settlement amount for the issuer. AfriRuil recalculates settlement on the server using face value, exact basis-point yield and remaining days.
Leading and outbid states
A valid bid must improve on the current leader by the configured minimum increment. The new leader has the settlement amount reserved while the previous leader’s reservation is released atomically.
What happens when an auction closes
The best valid bid becomes the winner at the scheduled close. Its reservation remains controlled while settlement is approved, an issuer payout is independently released and the investor position is activated. Repayment by the debtor is not guaranteed.