The Fiji Government has announced its borrowing calendar and annual borrowing plan (ABP) for the fiscal year 2024-2025, encouraging potential investors to prepare for the purchase of government securities. As outlined in the National Budget for 2024-2025, the government aims to borrow over $900 million during this financial year through a combination of domestic and international sources.
The details of the borrowing strategy are available on the Reserve Bank of Fiji’s website, which aligns with the medium-term debt management strategy (MTDS) through to fiscal year 2026. The government intends to maintain a balance of domestic and foreign currency borrowing while managing debt composition against market risks.
It is estimated that a total financing need of $984.6 million will be required, with $298.3 million expected to stem from external sources and $686.3 million from domestic sources. The government may adjust its borrowing limits between overseas and domestic sources, ensuring ample access to financing while adhering to the legislative borrowing limits established by Parliament.
Additionally, the government will seek external currency borrowing with favorable terms. Domestic debt issuance will primarily occur through the Fiji Infrastructure Bonds (FIB) and Viti Bonds. There will be adjustments to the debt maturity profile, focusing on reducing short-term treasury bills and moderating two to ten-year bonds. A significant portion of the debt, totaling $516.3 million, will arise from the issuance of long-term 15 and 20-year bonds.
Currently, the Viti Bond is available for investment until July 11, 2025, with a total of $10 million issued on tap. External financing will be sourced from both multilateral and bilateral partners, with an expected $231.6 million in new external financing, comprising approximately $158.6 million from multilateral sources and $73.0 million from bilateral sources.
Of the total $984.6 million to be raised, $635.5 million will be allocated to finance the budget deficit, while $349.1 million will be used for debt repayment.