St Kitts to float two more Treasury bills

The St Kitts and Nevis government has added two tenors to its Treasury bill issues, citing investor demand.

Starting May 17, the finance ministry will auction 182-day and 365-day treasurys, in addition to the current 91-day issue.

Prime Minister and Minister of Finance Dr Denzil Douglas said the new instruments were created in response to investor demand for greater options, and instruments of longer tenors or maturity periods.

It will also serve to lengthen the maturity structure of the federation's public debt over time, he said.

Douglas, speaking on his weekly radio programme, 'Ask the Prime Minister', said that starting on May 17 this year, his administration will make available new 182-day and 365-day Treasury bills, to be issued alongside the current 91-day instruments.

"Existing and new Treasury bill investors will be able to choose any combination of these three instruments through the established procedure. The letters that will be sent to existing T-bill holders by the Accountant General's Department this week will confirm the improved investment menu," he said.

Existing Treasury bill holders wishing to rollover into any of the new securities must give notice of their intent by April 20.

"The Federal government continues to experience a very high demand for government Treasury bills from both local and regional investors, as confirmed by roll-over rates that are close to 100 per cent," said Douglas.

"The Ministry of Finance has also had requests from investors for an option to lengthen the maturity of their investments, thereby avoiding the inconvenience of having to go through the rollover process every three months."

He said that investors who do elect longer maturities will be offered moderately increased yields.

The PM also revealed on the programme, which aired earlier this week, that there would be a gradual integration of the St Kitts' Treasury market with the Regional Govern-ment Securities Markets, to create additional liquidity.

- CMC