FIJI GOVERNMENT INTRODUCES VITI RETAIL BONDS

The Fiji Government this week announced the issue of Viti Bonds with an initial allocation of $20 million.

The Viti Bond is a specially designed fixed income security tailor-made to suit small or retail investors. Investors that are interested in the Viti Bonds can invest up to $100,000 for the following maturities and interest rates:

In making the announcement, the Ministry of Finance permanent secretary, Mr Filimone Waqabaca said that “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. It is also Government’s effort to continue to develop the capital market”.

He added that the key benefit of the Viti Bonds is that the interest will be paid on a quarterly basis and is exempted from income tax.  In addition, in the event investors wish to cash or liquidate their investment before the maturity date, they could do so by selling the bonds to the RBF.

The Fijian Government has allocated $20 million for the issue of Viti Bonds, which are available for investors between 2 April 2012 and 28 September 2012. It is important to emphasise that this $20 million is not additional to the $195 million that the Government will raise through the Fiji Infrastructure Bond announced earlier. Rather, the $20 million is part of the total of $195 million that is to be raised by Government in the domestic market.

The bonds can be purchased by filling in the tender form available from the Reserve Bank of Fiji.

Further information on investing in Viti Bonds is available in the Viti Bond Prospectus. A copy of the prospectus and tender forms can also be obtained from the Reserve Bank of Fiji office and website (www.rbf.gov.fj) and Ministry of Finance websitewww.finance.gov.fj.