Finance Ministry to auction GHS 24.5 bn debt on domestic market for Q1 2022

The Finance Ministry per its Q1 2022 Debt Issuance Calendar is planning to issue a total amount of GH¢ 24,500.00 million in fresh domestic debt issuance for the first quarter of 2022.

Of the total debt to be issued for Q1 2022, GH¢20,714.49 million is to rollover maturities with the remaining GH¢3,785.51 million being fresh issuance to meet government’s financing requirements.

The majority of the funds to be mobilised will come from the 91-day Treasury bill, the government will borrow as much as GHS 11.3 billion of the 91-day T-bills during the period which is higher than the previous quarter.

It will be followed by the 182 days Treasury bill, in which a total of GHS 3 billion will be mobilised. GHS 2.15 billion is however expected to be raised from 364-day Treasury bill.

With regards to the 6-year bond, some GHS 2 billion is expected to be raised with GHS 800 million also mobilised from a 10-year bond to be issued in the first quarter.

The 2-year and 3-year bonds are expected to raise GHS 1.4 billion and GHS 1.65 billion respectively.

Per the calendar, the 91-day and 182-day will be issued weekly, the 364-day bill through bi-weekly and the securities of 2-year up to 10-year will be issued through the book-building method.

Government said it expected the 4th quarter of 2021 calendar would meet the requirements of market participants, assuring all stakeholders and the public that it continues to strive for greater predictability and transparency in the domestic bond market.

The Issuance Calendar for the period January to March, 2022, formed part of its efforts to improve market transparency in the issuance of Government securities.

The calendar is developed based on the Net Domestic Financing provided in the 2022 Budget, the 2022 domestic maturities for the period, the 2022 Borrowing Plan and the Medium Term Debt Strategy.

It depicts the securities that are intended to be issued in respect of Government’s Public Sector Borrowing Requirements for the period January to March 2022.

In addition, the calendar also takes into consideration the 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.

BY TIMES REPORTER

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