Government issuing three solidarirty bonds | 09 June 2020
The government, through the Ministry of Finance, Trade, Investment and Economic Planning is issuing three solidarity bonds, each worth R500 million.
The three-year, five-year and seven-year bonds will be available on tap as from June 15, 2020.
The three-year bond will be earning a fixed interest rate of 7% per annum, compounded semi-annually. Compounded interest means that the holder of the bond will earn interest on the initial amount invested and also on the accumulated interest. The face-value together with the compounded interest will be paid upon maturity of the bond.
The five-year and seven-year bonds will be earning a fixed interest rate of 10% and 12% per annum, respectively. Interest for both bonds will be paid half-yearly, on May 20 and November 20 and calculated on a 365-day year.
All three bonds will be issued in multiples of R1,000 with a minimum value of R1,000. The bonds can be purchased by adult individuals (singly or jointly), commercial banks, corporate bodies, institutions, clubs, societies and other organisations. The issuance of the bonds is applicable to both residents and non-residents, in all cases.
The issuance and management of the solidarity bonds will be done by the Central Bank of Seychelles (CBS). The prospectus has been published in the Seychelles NATION and TODAY in Seychelles newspapers of Monday June 8, and will be published again on Saturday June 13 and Monday June 15, 2020. Copies of the prospectus and application forms can also be downloaded from the CBS website: www.cbs.sc.
The bonds are being issued as part of government’s effort to raise funding for additional spending, as announced by Minister Maurice Loustau-Lalanne in his 2020 Budget Amendment speech, in light of the impact of the COVID-19 pandemic on the Seychelles economy.
Press release from the Ministry of Finance, Trade, Investment and Economic Planning