Solidary Bonds
June 08, 2020
June 8th 2020, VICTORIA, SEYCHELLES:The Government, through the Ministry of Finance, Trade, Investment and Economic Planning (MoFTIEP) is issuing three Solidarity Bonds, each worth SCR 500 million. The 3-year, 5-year and 7-year Bonds will be available on tap as from 15th of June 2020.
The 3-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 5-year and 7-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 SCR 1,000 with a minimum value of SCR 1,000. 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 will be published in the Seychelles Nation and TODAY in Seychelles newspapers of Monday 8th June, Saturday 13th June and Monday 15th June, 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 effort to raise funding for additional spending, as announced by Minister Maurice Loustau-Lalanne in his 2020 Budget Amendment speech, in light of impact of the COVID-19 pandemic on the Seychelles economy.