Government has announced a $20 million bond issue, to fund its capital expenses.
While saying that it is part of efforts to develop Fiji's capital markets, the government is eyeing retail investors as well as individuals opting out of FNPF's pension scheme as potential buyers.
The government had earlier announced that it would raise its $195 million infrastructure expense through the issue of bonds. The $20 million Viti Bond issue is part of this.
According to a government statement, the Viti Bond was specially designed to suit small or retail investors. Investors have a choice to invest between $1000 to $100,000.
The bonds are being issued at three different rates and terms. The terms and interest rates are 4 per cent for five years, 4.5 per cent for seven years and 5 per cent for 10 years.
One of the key benefits of the bond is that interest would be paid on a quarterly basis and is tax exempted. Investors can also cash or liquidate their investment before the maturity date by selling their bonds to the Reserve Bank of Fiji (RBF).
"The Viti Bond is another initiative by government to boost the limited number of investment options available in the domestic market by giving retail investors, including individuals opting out of FNPF's pension scheme, more choices for investment," Finance permanent secretary Filimone Waqabaca said.
"It is also government's effort to continue to develop the capital market," Mr Waqabaca said.
The bonds will be available until September 28 this year.
Tenders for the bonds are to be lodged at the RBF office in Pratt St, Suva.