The Fiji Government is set to initiate the issuance of government securities this month as part of its borrowing calendar and annual borrowing plan (ABP) for the 2024-2025 fiscal year. This move aims to provide investors with additional investment opportunities.
According to the government’s budget plan, it intends to borrow over $900 million throughout the financial year using a combination of domestic and international sources. Details regarding these borrowing strategies, which align with the medium-term debt management strategy (MTDS) for the three fiscal years ending in 2026, are available on the Reserve Bank of Fiji’s website.
The government has expressed its commitment to managing a diverse mix of domestic and external currency borrowings while ensuring the debt composition is adequately managed against market risks. The ABP notes that the total financing requirement is pegged at $984.6 million, with $298.3 million expected from external sources and the remaining $686.3 million from domestic avenues.
Additionally, there may be adjustments made to the borrowing limits between overseas and domestic sources to fully utilize available financing options, while adhering to the borrowing limits approved by Parliament. The government continues to explore external borrowing opportunities that come with favorable terms.
For domestic debt issuance, plans include utilizing the Fiji Infrastructure Bonds (FIB) and Viti Bonds while gradually altering the debt maturity profile. This will involve a reduction in short-term treasury bills and a moderation in the issuance of two, three, five, and ten-year bonds, with a significant portion of the debt—totaling $516.3 million—expected to be raised through long-term 15 and 20-year bonds.
Currently, the Viti Bond is available for investment up to a total of $10 million until July 11, 2025. The external financing for Fiji’s debt will come from loans with traditional multilateral and bilateral partners, with new external financing projected at $231.6 million. This comprises around $158.6 million from multilateral sources and $73 million from bilateral financing.
Out of the total amount raised, $635.5 million is designated to cover the budget deficit, while $349.1 million will be allocated for debt repayment.