ISSUANCE CALENDAR FOR JUNE AND THIRD QUARTER, 2016
The issuance calendar for the first half of 2016 was developed in line with the MTDS that specifies the aggregate amounts to be raised by instrument in the period.
Note tha for the month of June 2016, Government plans to issue an amount of GH¢ 3,970.00 million to rollover a forecast maturities of GH¢ 3,816.76 million, with the remaining amount of GH¢153.24 million being a fresh issuance to meet Government's financing requirements.
Table 1: The June, 2016 calendar is as follows:
Instrument |
Amount (GH¢ M)
|
AV. Weekly Issue | Settlement Date | Issuance Method |
91-Day T/Bill | 1,850.00 | 462.50 | Primary Auction | |
182-Day T/Bill | 1,200.00 | 300.00 | Primary Auction | |
1-Year Note | 120.00 | 60.00 | 6th & 20th June 2016 | Primary Auction |
2-Year Note | 300.00 | 13th June 2016 | Primary Auction | |
5-Year Bond | 500.00 | 27th June 2016 | Book-Building Method | |
TOTAL | 3,970.00 |
Table 2: ISSUANCE CALENDAR FOR THIRD QUARTER (JULY-SEPTEMBER 2016)
Month | 91-Day | 182-Day | 1-Year | 2-Year | 3-Year | 5-Year | 7-Year | Total |
July | 2,480.00 | 1,600.00 | 120.00 | 300.00 | 1,000.00 | 5,500.00 | ||
August | 3,480.00 | 1,710.00 | 120.00 | 300.00 | 1,000.00 | - | 6,610.00 | |
September | 2,300.00 | 1,300.00 | 120.00 | 300.00 | 700.00 | 4,720.00 | ||
Total Third Quatet | 8,260.00 | 4,610.00 | 360.00 | 900.00 | 1,000.00 | 1,700.00 | - | 16,830.00 |
Also, note that for the third quarter of 2016, Government plans to issue an amount of GH¢16,830.00 million to rollover a forecast maturities of GH¢14,910.60 million, with remaining amount of GH¢1,919.39 million being a fresh issuance to meet Government's financing requirements.
Per the calendar
The calendar aims at continuing the objective of lengthening the maturity profile by reducing the short-term borrowing.
On average, the 91-day and 182-day will be issued weekly.
The 1-Year Note will be issued through the primary auction on average amount of GH¢60 million bi-weely.
Also for the 2-Year Note will be issued monthly through the primary auction.
The 3-year and 5-year issues will be done per the calendar through the book-building method.
However, should the auctions in the medium-term instruments be successful and acceptable at prevailing interest rates, Government would consider accepting a reasonable amount above the target to build buffers wihich would be used to reduce borrowing at the short end of the yield curve.
These instruments may be reopened to create liquidity in the instrument.
We believe that the combination of an overall plan for the half year and a more accurate detailed monthly borrowing plan, presented well in advance, should meet the requirements of market participants as it will ensure greater predictability and transparency.
Source: Ministry of Finance