E150M GOVT BOND A VIABLE INVESTMENT’

MBABANE – Make hay while the sun shines.

This was the advise of an economist who encouraged that companies, individuals and public institutions should invest in the E150 million infrastructure bond to widen their revenue base to cushion against challenging economic times in future. “Investing in bonds is always a good business decision especially if the coupon rate is high,” said the economist who preferred anonymity. On behalf of the State, the Central Bank of Swaziland (CBS) announced an eight-year infrastructure bond. The coupon rate for the bond will be fixed at 9.75 per cent and the auction date will be May 28, 2018 and the settlement date will be May 31, 2018. “The bond will be issued by competitive multiple bid auction and is open to the public including individuals, corporate and institutional investors. All investors should apply through primary dealers who are the four local commercial banks,” CBS announced.

The four commercial banks in the Kingdom of Eswatini are: Standard Bank, FNB, SwaziBank and Nedbank. It was mentioned that the purpose of the issuance of the bond was to raise finance capital for infrastructure projects which seek to stimulate economic, business and social development. CBS explained that the minimum bid size would be E10 000 for individual non-competitive bidders and E1 million for institutional investors. The interest payment date was reported to be November 30 and May 31 in each year, while the redemption date will be May 31, 2026. “Successful bidders who fail to honour their obligations on time will be disqualified from participating in one subsequent bond auction,” warned CBS. 

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