The Fiji Government has announced its borrowing schedule and annual borrowing plan (ABP) for the 2024-2025 fiscal year, starting the issuance of government papers this month, creating new investment opportunities for investors. As outlined in the 2024-2025 National Budget, the government intends to borrow over $900 million throughout the financial year through a combination of domestic and international borrowings.
Details on the government’s borrowing strategy, which aligns with its medium-term debt management strategy for the three fiscal years concluding in 2026, can be accessed on the Reserve Bank of Fiji’s website. The government aims to manage its debt composition to mitigate market risks, planning total financing needs of approximately $984.6 million. Of this, $298.3 million is expected to come from external sources, while $686.3 million is anticipated from domestic sources.
The government may adjust its overseas borrowing limits and domestic limits to maximize available financing options while adhering to the borrowing limits approved by Parliament. It will also seek external borrowing opportunities with concessional terms.
Domestic debt will be issued through Fiji Infrastructure Bonds (FIB) and Viti Bonds, with plans to gradually shift the debt maturity profile by reducing short-term treasury bills and moderating two, three, five, and ten-year bonds. A significant portion of the debt, totaling $516.3 million, will be raised through long-term bonds maturing in 15 and 20 years. The Viti bond, available for a total of $10 million, is open for investment until July 11, 2025.
External financing will primarily come from loans from traditional multilateral and bilateral partners, with new external financing estimated at $231.6 million. This amount comprises multilateral financing of approximately $158.6 million and bilateral financing of $73.0 million, as noted in the ABP. From the total $984.6 million expected to be raised, $635.5 million will be allocated to finance the budget deficit while $349.1 million will be used for debt repayment.