Maldives puts more than MVR 1.1 billion in treasury bills up for sale

The Maldivian government has opened subscriptions for more than MVR 1.1 billion in Treasury bills (T-bills) as it seeks to manage short-term cash flow and government financing requirements.

The Ministry of Finance and Public Enterprises announced four T-bills for subscription, with maturities ranging from 28 days to one year.

The securities carry interest rates between 3.50 percent and 4.60 percent.

The bills offered are:

- MVR 265 million with a 3.50 percent interest rate and a 28-day maturity

- MVR 55.03 million at 3.87 percent with a 98-day maturity

- MVR 255 million at 4.23 percent with a 182-day maturity

- MVR 535 million at 4.60 percent with a 364-day maturity

The securities are being offered Sunday, with settlement scheduled for the following day.

T-bills are short-term government debt instruments generally used to meet budget financing and cash management needs.

The bills are commonly purchased by commercial banks, the pension authority, state-owned enterprises and private companies.

The Ministry of Finance's Debt Management Department is responsible for issuing and managing government securities and serves as the registrar for securities offered to the market.

Government debt records, including securities, are maintained through the Commonwealth Secretariat Debt Recording and Management System.

The government currently issues three main types of securities: Treasury bills, Treasury bonds and Islamic securities.

According to the figures provided, the Maldivian government has approximately MVR 100 billion in outstanding government securities, underscoring the significant role of domestic borrowing in government financing.

The Debt Management Department has overseen the issuance and management of government securities since August 16, 2021, with issuance terms and related procedures published by the Finance Ministry.