ECCB
ANNUAL REPORT 2014/2015
15
EASTERN CARIBBEAN CENTRAL BANK
The amount raised, by the participating governments
on the RGSM, increased by $181.8 million (18.2 per
cent) to $1.2 billion in 2014/2015 (Chart IV). The
value of Treasury bills increased by $128.5 million to
$926.4 million; bonds rose by $53.9 million. The Bid
to Cover Ratio (value of bids divided by the value of
securities issued) increased to 123 from 121.
Chart IV
The strengthening of the RGSM was reflected in the
Government of Saint Lucia issuing the first security
with a maturity of over 10 years. The instrument was
a 15-year bond that was fully subscribed at a rate of
7.95 per cent.
The increase in investor appetite led to a decline in
coupon rates across the various tenors issued by the
governments on the RGSM. As a result there was a
downward shift in the ECCU weighted average yield
curve. The ECCU weighted average rate on 91-day
Treasury bills declined to 3.65 per cent from 4.08
per cent, while the rate on 180-day Treasury bills fell
to 5.42 per cent from 6.00 per cent. The weighted
average rate on five-year bonds fell by 48 basis points
(bps) to 6.69 per cent, while the weighted average rate
on the 10-year bond declined by 25 bps.
Institutions
Eastern Caribbean Enterprise Fund (ECEF)
The Eastern Caribbean Enterprise Fund (ECEF)
remains a key component of the Bank’s strategy for
development of money and capital markets in the
ECCU. The ECEF is envisioned to be a significant
mobiliser of financial resources for the private sector
in the region. It will complement the services of
existing financial intermediaries by filling the gap
with respect to access and availability of financial
resources to propel growth in the ECCU.
The ECCB continued to provide support to the ECEF
in its efforts to become fully operational. This entailed
the approval of the revised business model which
provides the framework for the development and full
implementation of the business strategies, policies and
procedures for the institution.
Further analyses and evaluations were conducted on
additional pipeline companies that were identified
based on the earlier diagnostic and new market
entrants. Efforts to capitalise the entity over the
financial year were advanced with consultations with
key strategic partners.
