Gov’t Announces Third T-bill Issuance in 2024, Aiming to Raise MVR 2.5 Billion

The Maldivian government has initiated the sale of Treasury bills (T-bills) worth MVR 2.5 billion, aiming to finance government expenditure. This marks the third occasion this year that T-bills have been made available for purchase, highlighting the government’s continued reliance on this financial instrument for raising funds.

The Finance Ministry has outlined the details of the T-bills on offer, which include a variety of repayment periods to cater to different investor preferences. Specifically, the offering comprises an MVR 1.4 billion T-bill with a 27-day repayment period, alongside an MVR 90 million T-bill set for repayment in 98 days. Additionally, investors have the option of MVR 114 million T-bills with a 182-day repayment period and MVR 952 million T-bills that mature in 364 days. The interest rates on these T-bills vary, ranging from 3.50 per cent to 4.60 per cent, providing a spectrum of investment opportunities based on the risk and return preferences of potential buyers.

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The primary purchasers of these T-bills include the pension fund, select banks, and certain government-owned companies. However, the investment opportunity is not limited to public sector entities; private companies also participate in buying T-bills, reflecting a broad interest in these short-term government securities.

Treasury bills are an integral part of the government’s financial management strategy, offering a short-term borrowing mechanism to meet immediate fiscal needs. These instruments are sold at a discount, allowing investors to earn a return when the bills mature at their face value. The sale of T-bills in the Maldives is conducted in Maldivian Rufiyaa (MVR), directly contributing to the government’s liquidity management and funding strategies.

This latest issuance of T-bills underscores the government’s ongoing efforts to manage its financial requirements effectively. By offering a range of maturities and interest rates, the Finance Ministry aims to attract a diverse group of investors, thereby ensuring the successful subscription of these securities. As the Maldivian government continues to navigate its fiscal responsibilities, the role of T-bills as a flexible and reliable funding source remains paramount.

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