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Government to present its Annual Borrowing Plan

February 17, 2022

The government will present its Borrowing Plan which will tie in with its debt management strategy.

The Borrowing Plan, which will be revised annually, will present the:

  • financing of government’s expenditure
  • composition of domestic and external borrowings and
  • financing instrument to use when borrowing

The Chief Debt Analyst at the Ministry, Mr. Dick Labonte, explained that the new strategy being adopted will allow for more transparency, as it will provide detailed and clear information on the government’s annual borrowing plan.

“Additionally, we aim to publish an indicative calendar of issuance for T-Bills and T-bonds. This will benefit the investors as they will be able to better prepare their investment plan moving forward.”

Currently, the government is in the process of issuing two new Treasury Bonds, which are part of the overall macro-economic framework and have been projected in the 2022 budget.

“This means that the issuance of the Treasury Bonds will not have any adverse impact on our projections for the year.”

Along with the two bonds that the Government will be issuing, worth a total of R500 million, the Development Bank of Seychelles (DBS), will also be issuing a Treasury Bond, amounting to R200 million which will be fully guaranteed by the Government.

The details of the Bonds are as follows:

3-year T Bond at 2.50%, payable half-yearly (R250 million)

7-year T Bond at 5%, payable half-yearly (R250 million)

5-year DBS T Bond at 3.75%, payable quarterly (R200 million)

The Auction Date is: 07th March 2022

Opening Bidding Window: 28th February 2022

Close of Bidding Window: 07th March 2022 at 08.30am

Issue Date: 10th March 2022

Follow the link below to access more information on the Treasury Bonds

https://www.cbs.sc/GovernmentDebt/Bonds/bonds.html

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