Government issues three treasury bonds for fiscal purposes |14 May 2022

The government, through the Ministry of Finance, National Planning and Trade, is issuing three Treasury Bonds for fiscal purposes as per its Q2 Issuance Plan.

The 3-year, 5-year and 7-year bonds will be worth a total of R500 million.

All three bonds will be available on auction basis, the allocation of which will take place on Monday May 23, 2022.  The application window for the auction will open one week prior to the allocation date, on Monday May 16, 2022 and will close at 8.30am on the auction day.

The 3-year, 5-year and 7-year treasury bonds will be earning a fixed interest rate of 2.70%, 4.30% and 5.90% per annum, respectively. Interest payments for the bonds will be done half-yearly, on March 15 and September 15 and calculated on a 365-day year. The first payment of interest for all three bonds will be on September 15, 2022.

All three bonds will be issued in multiples of R1,000 with a minimum value of R1,000.

The auction will be both on a competitive and non-competitive basis, with the former available to depository institutions, the Seychelles Pension Fund and insurance companies. The non-competitive auction will be available to all other eligible investors. The issuance of the bonds is applicable to both residents and non-residents having a Seychelles Rupee account with a local financial institution, in all cases.

The issuance and management of the bonds will be undertaken by the Central Bank of Seychelles (CBS). The prospectuses will be published in the Seychelles NATION and TODAY in Seychelles today, Saturday May 14, on Monday May 16 and Wednesday May 18, 2022.

Copies of the prospectuses and application forms can also be downloaded from the CBS website: https://www.cbs.sc/GovernmentDebt/Bonds/bonds.html.

The bonds are being issued as part of the government’s strategy to increase the frequency of bond issuances.

Press release from the Ministry of Finance, National Planning and Trade