IT is called the Fiji Government Viti Bonds because it is different from the Fiji Government Bonds or the Fiji Infrastructure Bond (FIB).
Permanent secretary for Finance Filimone Waqabaca explained that the features of the bond were different from the other government bonds.
For example, the interest rate on the Viti Bond terms of five, seven and 10 years have been pre-determined and made known. Under the normal FIB issue, these rates would be determined after investors lodge their bids.
Unlike the FIB, the return on investment on the Viti Bond is tax free.
The interest payment or return on the Viti Bond will also be paid out on a quarterly basis.
"Viti Bond is issued on tap, meaning that any investor can buy this bond on any given day. With FIB, you can only invest in it when government issues the bond," Mr Waqabaca said.
"The Viti Bond is targeting small investors and common citizens who may not be able to participate competitively, like the financial institutions, during the issue of FIB.
"The VB is also issued to provide another option for people to put their savings in, apart from banks and equity. Therefore, it supports capital market development.
"The pensioners who will withdraw lump sum could find the Viti Bond attractive because of the special features stated above."