Gov’t Seeks Over MVR 1.16 Billion in Treasury Bill Borrowing

The government is seeking to raise more than MVR 1.16 billion through its latest round of Treasury Bills, with the bulk of the borrowing concentrated in a one-year instrument, signalling a continued need for short-term domestic financing.

According to the Ministry of Finance and Planning’s latest invitation to subscribe, four Treasury Bill series are being offered with maturities of 28, 98, 182 and 364 days. The largest share, MVR 759.4 million, is attached to the 364-day bill maturing in February 2027 at an interest rate of 4.60 percent.

Shorter-term borrowing includes MVR 300 million through a 28-day bill at 3.50 percent, MVR 50.01 million through a 98-day bill at 3.87 percent, and MVR 57 million via a 182-day bill at 4.23 percent. As is typical, longer maturities carry higher interest rates, reflecting the greater cost of locking in funds for extended periods.

The structure of the issuance suggests a balancing act between immediate liquidity management and extending repayment obligations over a slightly longer horizon. While Treasury Bills are routinely rolled over as part of government cash flow operations, the allocation towards the 364-day tenor indicates a preference to secure funding for up to a year rather than relying exclusively on very short-term instruments.

Sales are scheduled for 22 February 2026, with settlement the following day. Subscription hours have been adjusted in line with Ramadan.

Treasury Bills form a core component of the Maldives’ domestic debt strategy, enabling the government to meet short-term financing needs and refinance maturing obligations. The level of investor participation in this round will offer a snapshot of liquidity conditions in the local financial system and appetite for government securities at current yield levels.