The government has moved to secure more than MVR 1.8 billion from the domestic market through a Treasury Bill issuance, continuing its reliance on short-term instruments to meet near-term financing requirements.
According to an invitation issued by the Ministry of Finance and Planning, subscriptions for the Treasury Bills were opened yesterday, with settlement taking place today. The issuance spans four maturities, ranging from 28 days to one year, with the largest share allocated to longer-dated bills.
The offering included MVR 350 million in 28-day Treasury Bills priced at 99.73, carrying an interest rate of 3.50 percent. A smaller tranche of MVR 31.03 million was offered through 98-day bills at 3.87 percent, while MVR 245 million was raised through 182-day bills with a yield of 4.23 percent. The largest component of the issuance, valued at MVR 1.26 billion, was allocated to 364-day Treasury Bills offering an interest rate of 4.60 percent.
The distribution of the issuance highlights a continued preference for short-term borrowing, while the higher yields on longer maturities reflect the increased cost of extending repayment periods. This approach allows the government to manage immediate liquidity needs while maintaining access to domestic financing channels.
Under the terms of the issuance, subscriptions were required to be submitted using official forms within specified time windows on the sale date, with full payment due on the settlement date. The Ministry has stated that failure to settle on time could result in suspension from participation in future government securities operations.
The Treasury Bills are issued under the existing prospectus framework, with further details available through the Ministry’s Debt Management Department.
