Swazi gov’t launches $12.5m infrastructure bond
APA-Mbabane (Swaziland) - The Central Bank of Swaziland (CBS) announced on Wednesday the launch of an eight-year government infrastructure bond to the tune of $12.5 million.
The purpose of the issuance is to raise capital for infrastructure projects that seek to stimulate economic, business and social development.
CBS governor Majozi Sithole said the coupon rate for this bond whose auction date is October 26, 2017 will be fixed at 10.00 percent.
"The bond will be issued by competitive multiple bid auction and is open to the public including individuals, corporate and institutional investors," Sithole said in a statement posted on the CBS website.
Investors have been advised to approach four local commercial banks – First National Bank, Nedbank, Standard Bank and Swazi Bank – to apply.
Swaziland's economy has not been stable during the past seven years and the situation worsened after the country’s share of Southern African Customs Union receipts dropped.
This year the country has not increased salaries for civil servants, a move that has been challenged in court by workers' unions.