10-year treasury bond worth R100 million to be issued |25 May 2023

Government, through the Ministry of Finance, National Planning and Trade, is issuing a 10-year treasury bond for fiscal purposes as per its second quarter (Q2) issuance plan.

The 10-year bond is in line with government’s strategy to lengthen the maturity of its debt profile and meet market demand for longer-tenor bonds.

The bond, worth a total of R100 million, will be available on an auction basis, the allocation of which will take place on Monday June 5, 2023. The application window for the auction will open one week prior to the allocation date on Monday May 29, 2023 and close at 8.30am on auction day.

The 10-year treasury bond will be earning a fixed interest rate of 8.3% per annum. Interest payments for the bond will be done half-yearly, on April 15 and October 15 and calculated on a 365-day year. The first payment of interest will be on October 15, 2023.

The bond 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 bond 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 bond will be undertaken by the Central Bank of Seychelles (CBS).

The prospectus will be published in the Seychelles NATION and TODAY in Seychelles newspapers on Thursday May 25, 2023, Saturday May 27, 2023 and Monday May 29, 2023.

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

Press release from the Finance, National Planning and Trade