Ken Ofori Atta – Finance Minister
Government says it plans to issue securities to the tune of GH?11,133.91 million to help manage its debts for the first quarter of this year.
Out of the amount, GH¢8,961.30 million would be used to rollover existing maturities, while the remaining GH¢2,164.61 million would meet government’s financing requirements for the period.
A government issuance calendar for the first quarter of 2018, issued by the Debt Management Office of the Ministry of Finance, which made this known, said the calendar was developed based on the 2018 Net Domestic Financing as stipulated in the 2018 Budget and Economic Policy of Government, domestic debt maturities and the Medium Term Debt Management Strategy (MTDS) for 2017-2019.
For January, GH¢1,690 million of 91-day Treasury bills would be issued; GH¢1,001 million in 182-day T-bills, and also GH¢959 million, as well as GH¢240 million in 1-year note and 2-year note respectively amounting to GH¢3,890 million.
In February, Government will issue GH¢1694 million in 91-day T-bills, GH¢509 million in 182-day T-bills, GH¢489 million in 1-year note, GH¢250 million in 2-year note and GH¢1,000 million in 5-year bonds totaling GH¢3,942 million.
For March, GH¢1,752 million would be mobilized through the issuance of 91-day T-bills, GH¢300 million would be sought through 182-day T-bills, GH¢400 million through 1-year note, GH¢250 million in 2-year note while also GH¢600 million would be mobilized through a 3-year bond all summing up to GH¢3,302 million.
“The 91-day and 182-day Treasury Bills will be issued weekly; the 1-Year Note will be issued bi-weekly through the primary auction, with settlement occurring on first and third Mondays of each month. However, a portion of the target for January will be issued at market through re-opening of the existing 2-Year Note (ISIN-GHGGOG043944, 21% coupon) maturing 7th January 2019, in the third week, settling on January 15, 2018. The 2-Year Note will be issued monthly through the primary auction, with settlement occurring on the second Mondays of each month; while the 3- and 5-Year bonds will be issued through the book-building method and settlement on the last Monday of each month,” the announcement stated.
Additionally, it noted that consistent with the MTDS, “we may announce tap-ins/reopening of existing instruments depending on market conditions.” Again it averred that in accordance with the 2018 Budget and Economic Policy, government planned to access the International Capital Market in the second quarter.
By Samuel Boadi