06.24.10

DBS to issue bonds to boost Seychelles’ economy

Posted in Offshore Banking, Seychelles banking at 3:41 pm by Robert Klien

With a view to raise capital and to accelerate lending, the Development Bank of Seychelles (DBS) has announced its plans to launch 2 bond issues for a total amount of R100 million.

It should be noted that this followed recent President’s and the bank’s board announcements that the government was considering ways of stimulating the economy by means of lowering interest rates.

Lending rates have been already slashed by the Development Bank from 15% to 10% as from April 1. The new bond issue will allow it to cut rates further.

In its press release, the Bank said that the 2 bonds will be issued for a value of R50 million each and will be launched on July 1. The 1st will be a 2-year bond with an interest rate of 5% per annum, while the 2nd will be a 3-year bond at 5.5% per annum. Both bonds will be available from July 1. Both residents and non-residents will be allowed to by the bonds. Issued singly or jointly, they will be transferable through the Central Bank of Seychelles at any time before they mature.

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