The Government of Grenada, on 28 April 2023, reissued an EC$15 million, 91-day Treasury Bill on the Regional Government Securities Market (RGSM).
The RGSM is a primary market for securities by the member Governments of the Eastern Caribbean Currency Union (ECCU).
The Treasury Bill (T-Bill) was competitively auctioned. The Auction closed at an interest rate of 1.5% and was oversubscribed with total bids received of $35.88 million. Comparatively, this T-Bill was reissued on 25 January 2023, with total received bids of EC$16.33 million. The interest rate closed at the maximum ceiling rate of 3.5%.
The latest auction results showed an increase in the value of bids received and a reduction in the interest rate from 3.5% in the previous auction to 1.5%, a favourable variance of 2 percentage points. The Government of Grenada plans to reissue $105 million in Treasury Bills on the RGSM in 2023. The Calendar of Issues can be found on the Eastern Caribbean Security Exchange website: http://www.ecseonline.com.
In accordance with the Medium-Term Debt Management Strategy (MTDS), that was tabled in Parliament in December 2022, one of Government’s strategic debt management objectives is to roll over/reissue these instruments with a view to lowering its cost of borrowing. This outcome is, therefore consistent with the MTDS.
Commenting on this positive development, the new Minister for Finance Honourable Dennis Cornwall stated: “This is extremely good news and signals strong investor confidence in Grenada’s economic and financial management.”