First ECSE auction for 2025 oversubscribed

by Linda Straker

• Bid aggregate for first 91-day Treasury Bill auction was EC$29.1 million
• For 2025, Grenada will be raising EC$105 million on the ECSE
• Funds earned from treasury bills will refinance existing treasury bills and notes

Grenada’s first auction of treasury bills on the Eastern Caribbean Securities Exchange (ECSE) for 2025 was oversubscribed by over EC$10 million, according to a report on the exchange’s website.

The first 91-day Treasury Bill auction was held on 26 February, and the offered amount was EC$15 million, but the bid aggregate was EC$29.1 million. This means that the auction was oversubscribed. Economists advise that when treasury bills are oversubscribed it is a sign that investors have confidence in the economy.

Funds earned from treasury bills from February 2025 to December 2025 will be used to refinance existing treasury bills and notes, with maximum coupon rates of 3.5% for 91-day bills and 5.0% for 365-day bills.

For 2025, Grenada will be raising EC$105 million on the ECSE. According to Grenada’s 2025 prospectus on the exchange, the government plans to raise EC$60 million through 91-day Treasury Bills and E$45 million through 365-day Treasury Bills at different dates during the months of February, May, August, September, October and December. The prospectus stated that “Each investor for any of Grenada’s auctions is allowed one bid with the option of increasing the amount being tendered until the close of the bidding period.” The prospectus also stated that yields “will not be subject to any tax, duty, or levy by the participating governments of the Eastern Caribbean Currency Union (ECCU).” The ECCU countries are Anguilla, Antigua and Barbuda, Dominica, Grenada, Montserrat, St Lucia, St Kitts and Nevis, and St Vincent and the Grenadines.

“Grenada’s fiscal position strengthened significantly from January to December 2024, driven by robust revenue collections across all tax categories,” according to the prospectus, and “The Primary Balance, including grants, reached EC$ 375.1 million, reflecting a 10.5% increase compared to EC$ 339.3 million in 2023. This improvement was primarily attributed to stronger-than-expected [Investment Migration Agency] IMA inflows, driven by the clearance of a backlog in application processing.”