The government has announced plans to raise an amount of GH¢22,187.87 million from the treasury market between October and December 2020.
The government is expected to use GH¢19, 668.27 million out of the amount to rollover maturities while the remaining GH¢2, 519.60 million will be used to meet Its financing requirements.
This was communicated in the October-December calendar released by the Treasury & Debt Management Division of Ministry of Finance on Friday October 9, 2020.
The Calendar, the finance ministry said, is part of Government’s effort to improve market transparency in the issuance of Government securities.
“The Calendar is developed based on the Net Domestic Financing in the 2020 Budget, the domestic maturities and the Medium Term Debt Management Strategy (MTDS) for 2020-2023. The Calendar shows the securities that are intended to be issued in respect of Government’s Public Sector Borrowing Requirements for the period October to December, 2020”.
In addition, the Calendar takes into consideration Government’s liability management programme, market developments (both domestic and international) and the Treasury & Debt Management objective of lengthening the maturity profile of the public debt.
However, the notice indicated that Government is expected to update the issuance Calendar on a monthly rolling basis, to reflect the financing needs of each quarter of the year.
The amounts stated in the Calendar are indicative to guide the market and may be revised when transaction adverts are published, the statement added.
According to the Finance Ministry, total issuance of GH¢6,300.00 million, GH¢8,850.00 million and GH¢11,327.87 million will be made in October, November and December 2020 respectively.
A total of GH¢9,700.00 million, GH¢1,750.00 million, and GH¢1,900.00 million will be raised from 91-Day, 182-Day and 364-Day respectively.
The statement further said;
“Per this Calendar, Government aims to build benchmark bonds through the issuance of the following Instruments:
“The 91-day and 182-day Treasury Bills will be issued weekly;
“The 364-day Treasury Bill will be issued bi-weekly, and also through the primary auction with settlement being the transaction date plus one working day;
“Securities of 2-year up to 7-year will be issued through the book-building method;
“Issuance of the 20-year bond as a shelf offering will be re-opened based on investors request and on market conditions; and
“Consistent with the MTDS, we may announce tap-ins/reopening of other existing instruments depending on market conditions.
“It is our expectation that this 2020 October to December Calendar meets the requirements of market participants.
“We assure all stakeholders and the general public that we continue to strive for greater predictability and transparency in the domestic bond market”.
On Thursday September 3, 2020, the government had announced plans to raise an amount of GH¢22, 727.87 million from the treasury market between September and November 2020.
The government was expected to use GH¢19, 677.65 million out of the amount to rollover maturities while the remaining GH¢3, 050.22 million was to be used to meet Its financing requirements.
The current target of the ministry is therefore less than that of the previous issuance by GH¢540.00 million.
