The government is moving to raise over MVR 1.1 billion from the domestic market through a new issuance of treasury bills, signalling continued reliance on short-term borrowing to manage liquidity needs.
According to an invitation issued by the Ministry of Finance and Planning, subscriptions have been opened for four tranches of MVR-denominated treasury bills, with a combined value of MVR 1.128 billion.
The offering includes short to medium-term instruments, ranging from 28 days to 364 days. The largest portion, amounting to MVR 490 million, is allocated to the 28-day treasury bill, carrying an interest rate of 3.50 percent. A 364-day bill accounts for MVR 423.6 million at a higher rate of 4.60 percent, reflecting the typical upward adjustment in yields for longer maturities.
Two additional tranches include a 98-day bill valued at MVR 180.04 million with an interest rate of 3.87 percent, and a 182-day bill worth MVR 35 million at 4.23 percent.
The sale and settlement of all four instruments are scheduled for 23 March. Investors are required to submit applications within the specified window on the sale date, and full payment must be completed on the settlement date, in line with the terms outlined in the government’s treasury bill prospectus.
Treasury bills remain a key instrument for the government to meet short-term financing requirements while managing cash flow. The continued issuance at varying maturities allows the state to balance immediate funding needs against the cost of borrowing, particularly as interest rates rise for longer-term securities.
