08.15.17

New bonds issued in Seychelles to attract investments

Posted in Business and Economy, Foreign investments at 8:23 pm by Robert Klien

New treasury bonds to encourage savings and attract new investments have been issued by the Central Bank of Seychelles and the Ministry of Finance, Trade and Economic Planning.

The bonds pay between 6 and 7% interest rates.

“The four bonds worth 500 million SCR (around $36.7 million) will also assist the Development Bank of Seychelles with its operations, mainly its borrowing activities and also allow the Central Bank to better manage money on the financial market,” said Brian Charlette, director general of debt management at the finance ministry.

Charlette said “the government is guaranteeing the Development Bank of Seychelles bond which is for a three-year period and will bring a 6 percent interest per year. The other three covers a 3- to 7-year period and has 6, 6.5 and 7% interest.” Payments of interest are made twice a year.

A bond is a debt security and is issued to raise money from investors willing to lend money for a certain amount of time. When a bond is bought, the buyer is lending to the issuer, in this case, the government. A bond is not to be confused with a treasury bill which is a short-dated government security, yielding no interest but issued at a discount on its redemption price.

 

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