Government has raised some Ghs 1,216 million in fresh debt from the domestic market with the issuance of 91, 182 and 364 day treasury bills on Friday, June 25, 2021.
Government in the issuance of the 91, 182 and 364 day T-bills accepted all bids made by banks, pension funds and insurance companies that participated in the auction.
Bids submitted by participants for the 91 day T-bills amounted to Ghs 739 million.
For the 182 and 364 day T-bills, bids submitted amounted to Ghs 184 million and Ghs 601 million respectively.
The 91 day and 182 day T-bills were auctioned at discount rates of 12.2 percent and 12.4 percent respectively.
The 364 day T-bill was however, auctioned at a discount rate of 13.7 percent.
Prior to the issuance on Friday, government a week earlier – June 18 – had raised some Ghs 1,224 million from the auction of the 91 and 182 day T-bills.
Government on the same day also raised some Ghs 1,859 million from the issuance of a 7 year bond.
Next week – July 2 – government is once again anticipated to borrow some Ghs 1,178 million in the issuance of 91 and 182 day T-bills.
The issuance is anticipated to be at a discount rate ranging between 12.3 and 12.6 percent, slightly above the discount rates for the 91, 182 and 364 day T-bills issued on June 25.
Issuance of the 91,182 and 364 day T-bills forms part of plans by government to borrow some Ghs 21.9 billion from the domestic market from June to August this year.
Borrowings made by government within the specified period will largely be made through the weekly and bi-weekly issuance of 91, 182 and 364 days T-bills.
In addition to the T-bills issuance will be the issuance of 2-year and up to 10-year bonds through the book-building method.
According to the Finance Ministry, Ghs 19,864.43 million of the gross amount of Ghs 21,960.00 million to be borrowed will be used to roll over maturities, with the remaining Ghs 2,095.57 million used to meet government’s short-term financing requirements.
With increased borrowings on the domestic debt market, the country’s public debt stock is expected to rise with domestic debt as a ratio of government’s total debt stock also expected to increase.
