Effective 12th August 2021, the issuance and management of government securities will be carried out by the Debt Management Department of the Ministry of Finance. The Debt Management Department of the Ministry establishes and reviews procedures and systems to ensure that the issuance of government securities is undertaken efficiently and effectively, in line with the Annual Borrowing Plan.
The Debt Management Department of the Ministry will also be the registrar for all government securities issued. Recording and management of all Government debt, including Government securities are maintained in the Commonwealth Secretariat Debt Recording and Management System (CS-DRMS). The terms and conditions for the issuance of these securities and the rules governing the operation are provided in the Government Securities Operations Manual.
The funds raised from the issuance of government securities are utilized to meet the Government’s budget financing requirements. Such funds, however, do not represent the amount of government borrowing or debt created from the issuance of government securities. The Net Issuance (TBNI) refers to the total of Treasury bill issuances less the total of Treasury bill redemptions for the period. This represents the amount of debt accumulated or debt repaid during the period. When the issuances are greater than the redemptions, the debt is accumulated and if the issuances are less than the redemptions, it’s a debt repayment.
At present, the government securities on issue are treasury bills, treasury bonds and Islamic securities.
|CURRENT MVR TREASURY BILL RATES|
|1 Month MVR Treasury Bills||3.50%|
|3 Month MVR Treasury Bills||3.87%|
|6 Month MVR Treasury Bills||4.23%|
|1 Year MVR Treasury Bills||4.6%|
|INVITATION TO SUBSCRIBE|
|Sale Date:||Sunday, 24 October 2021|
|Settlement Date:||Monday, 25 October 2021|
|Total Amount Offered:||MVR 2,109.8 million|
|RESULTS OF WEEKLY MVR TBILLS ISSUANCE|
|1 Month MVR Treasury Bills||MVR 631.8 million|
|3 Month MVR Treasury Bills||MVR 240 million|
|6 Month MVR Treasury Bills||MVR 205 million|
|1 Year MVR Treasury Bills||MVR 900.6 million|
|Government Securities Outstanding as of 11 October 2021
(in MVR millions)
|Fixed Coupon Bonds||7,526|
|Pension Accrued Rights Bond4||3,673|
|Fixed Coupon Bonds||2,434|
1- Treasury bills denominated in MVR, RDC and USD are aggregated and shown as Treasury bills
2- Islamic Instruments include Mudharaba and Ijara certificates issued
3- Amortizing bonds include the bond issued to MMA
4- Outstanding balance will be updated quarterly
5- Islamic Instruments include the Sukuk issued to international debt capital market
7- Foreign Currency denominated instruments are converted to MVR using MMA reference rate of USD/MVR for 11-Oct-21
Treasury bills (T-bills) are issued in accordance with the Prospectus for Treasury Bills Tap and the Prospectus for Treasury Bills Auction. At present, they are offered for 1 month, 3 month, 6 month and 1 year tenures and are sold at a discount, where each T-bill carries a face value of MVR 10,000 and all subscriptions for T-bills are in minimum and multiples of 10 T-bills.
The Government treasury bonds (T-bonds) issued to date are medium to long-term debt securities that pay a coupon periodically over the life of the security. The T-bonds are in MVR and currently issued on private placement basis only.
Islamic securities are financial instruments issued in compliance with Islamic Shari’ah concepts. Islamic securities issued at present are Mudharabah Certificate, Murabahah Certificate and Sukuk Murabahah. They are currently issued on private placement basis only.