by Linda Straker
- EC$15 million in treasury bills will be auctioned on 9 August
- Third 91-day treasury bill issue for 2024
- Yields will not be subject to any tax, duty, or levy by ECCU participating governments
The Government of Grenada will be auctioning EC$15 million in treasury bills on the Regional Government Securities Market (RGSM) on 9 August.
The 91-day Treasury Bill will be traded on the Secondary Market trading platform of the Eastern Caribbean Securities Exchange (ECSE) at the maximum rate of 3.50%. The money raised will be used to refinance Government’s existing treasury bills and treasury notes.
This is the third 91-day treasury bill issue by Government for 2024.
“The treasury bill issues are being raised under the authority of the Public Debt Management Act 2015, Part 3 Section 13, Laws of Grenada. The Constitution of Grenada stipulates that principal and interest payments are direct charges on the Consolidated Fund,” said the prospectus, which covers 2024 to 2026.
The prospectus, which offers details about the auction, states each investor is allowed one bid with the option of increasing the amount being tendered until the close of the bidding period. The bidding period is normally from 9 am to noon. A notice on the ECSE Facebook page urges people to “contact your broker if you wish to place a bid.”
According to the prospectus, yields from the treasury bills will not be subject to any tax, duty, or levy by the participating governments of the Eastern Caribbean Currency Union (ECCU). It further explains that the interest rate risk is primarily attributed to the short maturity of instruments in the domestic portfolio, resulting in an Average Time to Refixing (ATR) of 4.8 years.
