The government has decided to sell a treasury bond through the Maldives Stock Exchange (MSE) for the first time.
The announcement from Ministry of Finance on Tuesday, December 26, said the state is seeking to list an MVR 50 million bond on the stock exchange under the state's medium-term debt management strategy; issued last Monday.
The ministry identifies that the practice would expand the inclusivity of investors in state-sanctioned bond market and establish a secondary market for government securities exchange.
Minister of Finance Dr. Mohamed Shafeeg noted that the participation in government bond sale until now have proceeded at an institutional level.
"Meaning this would enhance opportunities for individuals to invest through the stock exchange," Minister Shafeeg said.
Apart from the MVR 50 billion offered for sale through the MSE, the government has initiated the sale of MVR 2.9 billion in treasury bills (T-Bills).
The Maldives Monetary Authority (MMA), the central bank, offers T-Bills with four maturity options: 28-day, 98-day, 182-day, and 364-day repayment plans. The interest on these financial instruments compounds daily for the days exceeding the specified repayment period.
The latest statistics from the Ministry of Finance reveal that the government has sold MVR 77 billion worth in T-bills, bonds, and Sukuks, out of which MVR 68 billion were transactions made in Maldivian Rufiyaa.
The government announces T-Bill sales weekly as part of its cashflow management. Typically, these T-Bills are sold to the Pension Fund, commercial banks, state-owned enterprises (SOEs), and select private companies.
The major T-Bill investors include Commercial Bank of Maldives (CBM), owned by Champa Brothers and Universal Group of Companies.
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