The Government of Saint Lucia will issue 5/6/7-year zero-coupon Government Bonds to prospective investors applicants under the Citizenship by Investment Program (CIP). The Government of Saint Lucia shall be the registrar and paying agent for the securities. The amount of the investment will depend on the whether the investor is applying alone, with a spouse or otherwise as offered under the CIP.
The bond will be issued under the authority of the National Savings Development Bonds Act (Amendment) Section 3, Cap. 15.25, and by a resolution of Parliament No. 110 of July 6th 2020, which authorized the Minister for Finance to borrow monies for public uses of the state by the issue of securities.
The creation of this special COVID-19 Relief Bond starting at USD 250,000 is a non-interest-bearing government bond to which no processing fee is payable by the applicant. The bond must be registered and remain in the name of the applicant from the date of first issue.
This bond option is available ONLY for a limited time up to December 31, 2021. The Bond must be registered and remain in the name of the applicant from the date of first issue for citizenship purpose.
An administrative fee of US $30,000 is payable by the applicant once the application for citizenship have been granted.
There after the qualifying investment sum for this special bond option is payable as follows:
- Sole applicant (5 years holding bond): US$250,000
- Applicant applying with 1 qualifying dependent (6 year holding bond): US$250,000
- Applicant applying with up to 4 qualifying dependents (7 year holding bond): US$250,000
- Applicant applying with up to 4 qualifying dependents (5 year holding bond): US$300,000
- Each additional qualifying dependent along with an applicant applying with up to 4 qualifying dependents: US$15,000
Issuer: The Government of the Saint Lucia (GOSL)
Purpose: The security will be issued to assist with 2020/2021 debt re-financing
Bid Minimum: USD 250,000 and USD 300,000 in US dollars
Legislative authority: The Bonds are being issued under the authority of :
- The National Savings and Development Bonds (Amendment Act), Chapter 15.25 of 2005 and by resolution of Parliament No 110 of July 6th 2020.
- The Citizenship by Investment (Amendment) Regulations
Interest rate: Zero Interest
First Issue Date: 12th May, 2020 pursuant to the Citizenship by Investment (Amendment) Regulations No. 73 of 2020
Maturity date: 2025 (5 -year bond), 2026 (6 -year bond), 2027 (7 -year bond) The specific date in the year will be determined by the date which the investor purchased the Bond in accordance with their Bond Certificate issue date
Principal: The Principal will be repaid at maturity in, 2025 (5-year bond), 2026 (6-year bond) or 2027 (7-year bond) The Government of Saint Lucia is registrar and paying agent for the securities
Redemption after Maturity
The Redemption of Covid-19 Bond at Maturity of Holding Period shall be as follows:
- The redemption of the Bond can be transacted by the citizen, an authorized agent or any other representative so selected by the citizen.
- If the citizen uses a representative, that representative of the citizen must have a notarized letter of authorization.
- The Original Bond Certificate is to be presented to the Accountant General’s Office in Saint Lucia.
- The detailed banking information of the citizen is to be provided for deposit of funds
As at March 2020, the total stock of Central Government Debt outstanding increased by less than 1 percent to EC$3,190.6M (excluding accounts payable) when compared to the same period in 2019. The existing debt portfolio is composed of 50.8 percent domestic and 49.2 percent of external debt. Domestic debt showed an increase of EC $73.8M in Treasury Bills and an overall decrease of EC $29.1 million in Bonds and Notes held by residents when compared to March 2019.
The full report is available here