On Wednesday June 18th, the Government of Dominica issued a $20 million, 91 day Treasury bill on the Regional Government’s Securities Market (RGSM).
RGSM is a regional market for the trading of debt instruments of the member states of the ECCU, established in November 2002.
The regional market allows all member governments to issue their securities throughout the member countries and beyond, allowing residents and non-residents to buy and sell the securities of their choice.
The security was competitively auctioned which resulted in an oversubscription of $5.5 million and an interest rate of 1.999 percent.
This auction saw a total of six bids with three of these bids being successful.
This is Dominica’s second issue on the RGSM for 2014 with a total of $40 million being issued so far.
The previous issue was administered on the 18th of March 2014, where a 91 day Treasury bill was issued for $20 million. This issue was also oversubscribed and received a rate 1.999 percent.
The RGSM initiative was meant to enhance the investment options available to investors and is backed by the full faith and credit of the issuing Government.
Member states participating in the RGSM include Anguilla, Antigua and Barbuda, Dominica, Grenada, Montserrat, St Kitts and Nevis, Saint Lucia, and St Vincent and the Grenadines.
Source: SatNews http://www.news.dm/government-of-dominica-issues-a-20-million-treasury-bill-on-the-regional-governments-securities-market/