by Linda Straker
- In 2022 treasury bills worth EC$115 million were issued on RGSM
- EC$105 million on RGSM will be issued to refinance existing treasury bills and treasury notes
- Treasury Bill issued under Public Debt Management Act 2015
From January 2023 to December 2023, the Dickon Mitchell administration will be issuing a total of EC$105 million on the Regional Government’s Securities Market (RGSM) to refinance its existing treasury bills and treasury notes.
The amount will be raised by issuing 91-day Treasury Bills 4 times during the year and 365-day Treasury Bills 3 times during the year. The first 91-day Treasury Bill for E$15 million was issued on 25 January.
“On the Regional Government Securities Market, today 25th January 2023 the Government of Grenada’s 91-day Treasury Bill auctioned on the ECSE’s primary market platform, raised $15.0 million. The competitive uniform price methodology used, resulted in a discount rate of 3.46972%,” said the 25 January 2023 daily report from the Eastern Caribbean Securities Exchange (ECSE). That report provides the latest trading information and financial tip for investors.
Besides 25 January, the other dates for issuing the 91-day Treasury Bill in 2023 are 28 April, 1 August and 2 November. The maximum coupon rate of the new treasury bills is 3.5% per annum.
The government will also be issuing 365-Day Treasury Bills for EC$25 million on 8 August. However, on 26 October and 14 December, the 365-day Treasury Bills will be for EC$10 million, respectively. “The maximum coupon rate of the new Treasury Bills is 5% per annum,” said the Government’s Prospectus which was drawn up as per the rules of the RGSM.
Investors will be able to participate in the auction through the services of licenced intermediaries who are members of the ECSE. The prospectus said that “yields will not be subject to any tax, duty, or levy by the Participating Governments of the Eastern Caribbean Currency Union.”
The Treasury Bill issues are being raised under the authority of the Public Debt Management Act 2015, Part 3 Section 13, Laws of Grenada.
In 2022, the Government of Grenada issued treasury bills worth EC$115 million on the Regional Government Securities Market, issuing four 91-day treasury bills which totalled EC$60 million; three 365-day treasury bills which totalled EC$45 million, and one 24–month treasury bill valued at EC$10 million.
