Treasury Bills overfunded by GHS 462 million at average interest cost of 29.24%
Government saw strong demand for its short-term debt instruments, with the recent issuance of 91-day, 182-day, and 364-day Treasury Bills oversubscribed by GHS 462 million.
The Finance Ministry raised a total of GHS 3,526 million from primary dealers, exceeding its target of GHS 3,064 million.
The 91-day Treasury Bill received bids worth GHS 2,639 million with the government accepting all bids tendered, the 182-day Treasury Bill also received bids worth GHS 650 million with the government once again accepting all bids tendered for the debt security.
The 364-day Treasury Bill received bids worth GHS 237 million with the government accepting all the bids tendered.
The Finance Ministry collected GHS 3,526 million in bids from primary dealers, with the highest interest rate of 31.65% for the 364-day Treasury Bill, 28.71% for the 182-day Treasury Bill and 27.36% for the 91-day Treasury Bill.
On average, the interest cost to the Government for the GHS 3,526 million funds raised from the T-Bill auction last Friday, is 29.24%.
Come this Friday, the government is planning another issuance of 91-day, 182-day and 364-day Treasury Bills on September 8, 2023, seeking to secure GHS 2,601 million in fresh funding to meet its short-term financing needs.
Finance Ministry plans GHS 38.9bn debt issuance in T- Bills from July to September
The Finance Ministry has revealed plans to issue a gross amount of GHS 38.9bn in debt through T-Bills for the period from July to September 2023.
This is per Government’s Issuance Calendar for July to September published by the Finance Ministry on August 9, 2023.
The issuance of the GHS 38.9bn debt will be done solely through T-Bills due to the ongoing domestic debt programme.
“In reference to the on-going Domestic Debt Exchange Programme (DDEP), Government’s financing from the domestic market will be the issuance of only treasury bills. In this regard, Government plans to issue a gross amount of GH¢38,959.63 million for the period, July to September 2023,” noted the Finance Ministry.
“Government expects that the July to September 2023 Calendar meets the requirements of market participants,” the Ministry added.
