MVR 645.41 Million Offered by Gov’t in Treasury Bills

The government’s upcoming MVR 645.41 million Treasury bill offering would leave more than two-fifths of the amount repayable within 28 days if fully subscribed, with the largest allocation concentrated in the shortest maturity.

The Ministry of Finance and Public Enterprises has scheduled the sale for 6 September 2026, with settlement on 7 September. The offering comprises four maturities, carrying annual interest rates ranging from 3.50 to 4.60 per cent.

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The remaining allocations comprise MVR 50.01 million in 98-day bills at 3.87 per cent, maturing on 14 December 2026, and MVR 83.4 million in 364-day bills at 4.60 per cent, maturing on 6 September 2027.

The maturity profile means MVR 562.01 million, or approximately 87.1 per cent of the proposed issuance, would fall due by 8 March 2027 if the sale is fully subscribed. The government would therefore need to provide for repayment or refinance most of this borrowing within six months of settlement.

The MVR 645.41 million offered represents the bills’ total face value. Treasury bills are sold at a discount, meaning investors pay less upfront than the amount repayable at maturity. Based on the published prices, full subscription would generate approximately MVR 635.43 million in proceeds.

Subscriptions must be submitted using the ministry’s prescribed form between 8.30am and 11am on 6 September. Payment is required in full on the settlement date.