Govt to raise GHC24.5b from money market

By Elorm Desewu The government, through the Bank of Ghana, (BoG) plans to raise an amount of GH¢24.500 billion from the domestic money market for the first quarter of 2022, by issuing Treasury Bills, Notes and Bonds. The government plans to issue a gross amount of GH¢24.500 billion, of which GH¢20.714 billion is to rollover debt maturities. The remaining GH¢3.785 million would be a fresh issuance to meet government’s financing requirements. For the first quarter of 2022, the government will issue GHC11.3 billion worth of 91 Day, GHC3billion worth of 182 Day Treasury Bill, GHC 2.15 billion worth of 364 Day Treasury Bill, GHC 1.4 billion worth of Two year Note, GHC 1.650 billion worth of Three year note, GHC1 billion worth of Five year bond, GHC2 billion worth of Six year bond, GHC 1.2 billion worth of Seven year bond, GHC 800 million worth of 10 year bond, Per the debt calendar, the government aims to build benchmark bonds through the issuance of instruments as follows: the 91-day and 182-day will be issued weekly; the 364-day bill will be issued bi-weekly also through the primary auction with settlement being the transaction date plus one working day; securities of 2-year up to 10-year will be issued through the book-building method; and consistent with the MTDS, Government may announce tap-ins/reopening of other existing instruments depending on market conditions. The government expects that this January to March 2022 Calendar meets the requirements of market participants. The Calendar is developed based on the revised Net Domestic Financing provided in the 2022 Mid-Year Budget, the 2022 domestic maturities, the 2022 Annual Borrowing and Recovery 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. The Calendar 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. The Medium-Term Debt Management Strategy proposes appropriate financing for the period 2022 – 2025 which sets out to achieve the following objectives: meet government’s funding needs on a timely basis and at a relatively lower cost subject to prudent levels of risk; promote the development of efficient primary and secondary markets; and pursue any other action considered to impact positively on the public debt stock.