FREQUENTLY asked questions
* What is a Viti Bond?
Viti Bond is an alternative option to other investments such as term deposits, shares or units in a trust fund. It is a new type of fixed income instrument/paper targeting small investors. The Viti Bond will be issued by the Government of Fiji. A total of $20 million has been allocated for investment in Viti Bonds.
* What is a Bond?
A bond is a type of investment where the investor (bond holder) lends money to the borrower (the issuer). An issuer sells bonds to raise funds and agrees to pay the bond holder an agreed interest rate at fixed intervals throughout the life of the bond. Interest payments for the bond are referred to as coupons. Bond terms normally range from 2 years to 30 years. At the end of the term, the issuer pays the full amount invested back to the bondholder. In the case of the Viti Bond, the investors will be the general public and the issuer is the Government of Fiji.
* When will interest be paid on the Viti Bonds?
Interest will be paid quarterly on the following dates until the bond matures:
March 30, June 30, September 30, December 30.
* Is there any tax charged on interest earned on Viti Bonds?
Interest earned from investing in Viti Bonds is exempted from tax.
* Who is eligible to invest in Viti Bonds?
This is open to the general public. Anyone, including companies and pensioners may invest in Viti Bonds.
* What is the minimum and maximum amount of investment in Viti Bond?
The minimum amount of investment is $1000 and thereafter in multiples of $1000 up to a maximum amount of $100,000.
* What are some of the advantages of investing in Viti Bonds?
There is no risk that interest will not be paid or that total funds invested will not be recovered as the bonds are issued by the Government of Fiji;
Interest earned on the investment is exempt from income tax;
The rate of interest on the bonds is competitive compared to other similar investments;
Viti Bonds are transferable and the transfers are free from Government Stamp duty.