Government issues treasury, DBS bonds |08 August 2017

As of yesterday, August 7, the government has started issuing three treasury bonds as well as providing a guarantee for the Development Bank of Seychelles (DBS) through a fourth bond.

Giving details of the bonds to the press yesterday afternoon, Brian Charlette, director general of the debt management division within the Ministry of Finance, Trade & Economic Planning, said the main aim for issuing those bonds is to attract more investments and encourage more people to save.

“In the case of DBS, the bonds will finance their ongoing lending activities while for the ministry the bonds will lengthen the maturity profile on borrowing,” said Mr Charlette.

The DBS bond for three years attracts a 6% interest on a sum of R150 million, while the three treasury bonds are: for three years 6% interest on R50 million, five years 6.5% interest on R150 million and seven years 7% interest on R150 million.

Moyra Alexis, head of the financial markets division at the Central Bank of Seychelles (CBS), explained that as the bonds are a form of saving the smallest amount of money being accepted as investment from any individual resident or non-resident aged 18 years onwards and with accounts in the banks here is R5,000 and it increases by R5,000.

She said application forms can be collected at the Central Bank (CBS) during working hours or can be downloaded from its website.

Ms Alexis pointed out that the CBS will continue to accept application forms until it has reached the required sum for each bond. The CBS will notify the applicants if they have been successful not later than a day after receiving the applications and payments must be made before 10am on the third day after receiving notification and interest will be paid to applicants twice a year.

More details on the bond are available in the prospectus applicants will receive when they collect application forms at the CBS.