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Government Securities Operations
21 September 2021 Share Tweet

Overview

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 Bills3.50%
3 Month MVR Treasury Bills3.87%
6 Month MVR Treasury Bills4.23%
1 Year MVR Treasury Bills 4.6%

INVITATION TO SUBSCRIBE
Series number:TB-2021-020
Sale Date:Sunday, 26 September 2021
Settlement Date:Monday, 27 September 2021
Total Amount Offered:MVR 1,749.8 million

RESULTS OF WEEKLY MVR TBILLS ISSUANCE
Series number:TB-2021-019
1 Month MVR Treasury BillsMVR 308.00 million
3 Month MVR Treasury BillsMVR 249.70 million
6 Month MVR Treasury BillsMVR 61.00 million
1 Year MVR Treasury Bills MVR 405.80 million

Government Securities Outstanding as of 13 September 2021
(in MVR millions)
56,311
Domestic 46,170
Treasury bills128,309
Islamic Instruments2700
Fixed Coupon Bonds7,529
Amortizing Bonds35,959
Pension Accrued Rights Bond43,673
External510,140
Fixed Coupon Bonds 2,435
Islamic Instruments67,705
Notes:
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- External Securities portfolio will be updated monthly
6- 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 13-Sep-21

Types of Government Securities

Treasury Bills

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.

Treasury Bonds

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

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.


Standard Forms

  1. MVR Treasury Bills Subscription Form