1. Home
  2. Public Finance
  3. Debt Management
  4. Government Securities Operations
Government Securities Operations
30 November 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-2021-025
Sale Date:Sunday, 5 December 2021
Settlement Date:Monday, 6 December 2021
Total Amount Offered:MVR 1,575 million

RESULTS OF WEEKLY MVR TBILLS ISSUANCE
Series number:TB-2021-024
1 Month MVR Treasury BillsMVR 789 million
3 Month MVR Treasury BillsMVR 436 million
6 Month MVR Treasury BillsMVR 292 million
1 Year MVR Treasury Bills MVR 1,690.20 million

Government Securities Outstanding as of 22 November 2021
(in MVR millions)
56,771
Domestic 46,677
Treasury bills128,821
Islamic Instruments2700
Fixed Coupon Bonds7,511
Amortizing Bonds35,939
Pension Accrued Rights Bond43,706
External10,094
Fixed Coupon Bonds 2,424
Islamic Instruments57,670
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- Islamic Instruments include the Sukuk issued to international debt capital market
6- Foreign Currency denominated instruments are converted to MVR using MMA reference rate of USD/MVR for 22-Nov-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
  2. Treasury Bills - Pledge Registration Form
  3. Treasury Bills - Pledge Release Form
  4. Government Securities Authorised Signatories Form