Grenada gov’t raises millions on regional securities market
THE GRENADA government raised an estimated EC$15 million (one EC dollar=US$0.37 cents) on the Eastern Caribbean Securities Exchange (ECSE) through the issue of its first 91-day Treasury bill for this year.
“On the Regional Government Securities Market today (Tuesday) February 6, 2024, the government of Grenada’s 91-day Treasury bill, auctioned on the ECSE’s primary market platform, raised $15.0 million. The competitive uniform price methodology used, resulted in a discount rate of 3.46972 per cent,” the ECSE said in its daily report.
According to the Grenada government’s prospectus, the Treasury bills are being issued as part of its debt-management strategy to lower the cost of the government’s borrowing by reducing reliance on the overdraft facility.
The prospectus states that the government’s debt strategy places a strategic emphasis on prioritising concessional borrowings, setting predetermined ceilings for nonconcessional borrowings, and aligning with debt sustainability targets.
“The strategy aims to support major projects that advance the government’s agenda for transformation, resilience, and sustainable development. Strengthened risk assessments, improved debt proposal evaluations, and enhanced negotiating and contracting practices are key components to secure favourable terms in line with debt sustainability goals.
“The government’s strategic focus involves an expansionary fiscal profile, projecting smaller primary surpluses to support economic activity, job creation, and resilient development, aligning with the Fiscal Resilience Act 2023. The economy is forecasted to grow by 3.6 per cent in 2024 and economic prospects are broadly positive. Potential risks include global inflation, tepid growth in source markets, geopolitical tensions, and adverse weather,” according to the prospectus.
The Dickon Mitchell government says it intends to raise EC$115 million this year by issuing Treasury bills at different periods.
The next 91-day Treasury bill will be on May9 and each investor is allowed one bid, with the option of increasing the amount being tendered until the close of the bidding period.
“Yields will not be subject to any tax, duty, or levy by the participating governments of the Eastern Caribbean Currency Union. The countries are Anguilla, Antigua and Barbuda, Dominica, Grenada, Montserrat, St Lucia, St Kitts and Nevis and St Vincent and the Grenadines,” said the prospectus.