Central Bank to Sell SLe4.80B Treasury Bills and Bonds
By: Edward Dictionary Caulker
The Central Bank has outlined its strategy to auction SLe4.80 billion (SLe4,766,720,050) in Treasury Bills throughout the third quarter of 2024, as detailed in its recently published Treasury Securities Auction Calendar.
Spanning from July 4 to September 26, 2024, the auction period will include a diverse array of Treasury Bills, encompassing SLe63.1 million (SLe63,125,000) in 91-day bills, SLe15 million (SLe15,054,600) in 182-day bills, and SLe3.5 billion (SLe3,516,013,300) in 364-day bills. Additionally, the Bank will offer longer-term bonds, comprising SLe422.3 million (SLe422,264,350) in 2-year bonds, SLe250.2 million (SLe250,262,800) in 3-year bonds, and SLe500 million in 10-year bonds.
Treasury Bills serve as short-term financial instruments used by the Central Bank to raise funds on behalf of the Government of Sierra Leone. The bonds offered include zero-coupon options, which are traded at a discount and do not involve periodic interest payments.
For July, the Bank plans to auction SLe2 billion (SLe2,071,459,550) worth of Treasury Bills, with offerings including SLe4.4 million (SLe4,375,000) in 91-day bills, SLe4.4 million (SLe4,375,000) in 182-day bills, SLe1.3 billion (SLe1,365,709,550) in 364-day bills, SLe110 million (SLe110,000,000) in 2-year bonds, SLe87 million (SLe87,000,000) in 3-year bonds, and SLe500 million in 10-year bonds.
August’s auction will feature SLe24.4 million (SLe24,375,000) in 91-day bills, SLe4.4 million (SLe4,375,000) in 182-day bills, SLe1.2 billion (SLe1,241,226,900) in 364-day bills, SLe206 million (SLe206,014,350) in 2-year bonds, and SLe70 million (SLe70,000,000) in 3-year bonds.
In September, the offerings will include SLe34.4 million (SLe34,375,000) in 91-day bills, SLe6.3 million (SLe6,304,600) in 182-day bills, SLe909 million (SLe909,076,850) in 364-day bills, SLe106.2 million (SLe106,250,000) in 2-year bonds, and SLe93.2 million (SLe93,262,800) in 3-year bonds.
The highest volume of offerings is anticipated in July, with August and September following with SLe1.5 billion (SLe1,545,991,250) and SLe1.1 billion (SLe1,149,269,250) respectively.
This strategic issuance aims to meet financial obligations and liquidity needs while ensuring robust market participation and sustained investor interest in Sierra Leone’s financial securities.
