Sierra Leone Government Securities

TREASURY BEARER BONDS

These are government securities introduced in 1993 with a 12 (twelve) month term to maturity. They are issued in the primary market at face value in monthly auctions. Since interest payments are made quarterly, four interest coupons are attached to the TBB certificates, which are presented on maturity to the commercial banks for interest payment. Commercial banks and the Discount House participate in the primary market as agents through which customers bid for Treasury Bearer Bonds.

Currently treasury bonds are issued in certificated bearer form but reform measures in the form of a Book-Entry System and other IT infrastructure are being put in place to support the de-materialised issuance of these treasury bonds and promote the development of secondary market in government securities.

TREASURY BILLS

These are short-term government borrowing instruments introduced in 1964 with a 91 day term to maturity. As investment assets they are sold by auction in weekly lots with tap issues to Discount House, banks and other public agencies. Treasury bills are issued through commercial banks and Discount Houses as primary market dealers, on a discount basis - that is, they are sold originally at a price below their face value, with face value payable at maturity. The difference between the price and face value constitute the interest payment. Treasury bills remain an important financial instrument with a significant role in monetary management.