Over the past 3 decades, numerous sovereign states set up and actively marketed citizenship-by-investment programs. HNWI Investors gained a return of enhanced global mobility. And sovereign states enjoyed a remarkably valuable sovereign fund raising and economic diversification platform.
Within OECS region, CBI has helped to enable the transfer from a sugar/banana-based economy to one focused on tourism, leisure and financial services.
The success of these programs is undoubted. Billions of sovereign and societal value have been created. FDI has flowed into economies that would have gone elsewhere, were it not for citizenship-by-investment. Governments have been able to invest in infrastructure with enhanced monetary autonomy. Employment has been created across the socio-economic spectrum.
Saint Lucia hosts the newest program in the Caribbean. The CBI Saint Lucia is a sovereign investment with multiple forms of ROI:
- ·Enhanced physical mobility
- ·Ability to invest and build new global wealth structures
- ·Capture new value and enjoy life long yield
- ·Hedge against localised volatility
The St Lucia Covid Bond Program is at the heart of Caribbean innovation in the CBI industry. Through the COVID bond program, the Government of St Lucia found an innovative solution that created a “win-win” for investors and St. Lucians.
By creating a new bond offering, investors inject $250,000/$300,000 with varying holding periods onto the sovereign balance sheet, thereby creating enhanced autonomy for St. Lucia against the current challenging economic dynamic.
Due to the investment structure, the COVID bond offering is particularly attractive to families looking to augment global mobility and hedge volatility. Fully backed by the government and therefore very low risk, the coupon will be repaid after 5/6/7 years depending on the tenor selected – creating a favourable long term value proposition compared to donation or real estate options.
The CIP Saint Lucia COVID bond can be seen as the only socially responsible investing (SRI) option in the investment migration industry
The Bond is a sophisticated investment choice that creates value for St Lucia, St Lucians and investors alike. St Lucia gains from a sustainable liquidity source. Investors gain a value catalyst from enhanced global mobility, and lifelong yield and the bond pricing. It’s a real win, win – which in the time of COVID is pretty rare
The Cabinet of Ministers of Saint Lucia has approved the extension of the offering of “The Special COVID-19 Relief Bond” beyond 31st December, 2020 for one more year until 31st December, 2021. The amendments to the requisite regulations to allow for the extension shall be done shortly and once implemented, the CIP Unit shall be receiving applications for the Special COVID-19 Relief Bond in 2021. The applicant fees and fee structure for the Special COVID-19 Relief Bond shall continue as presently exists. This includes Government fee of US$ 30,000 per bond application and $7,500 due diligence fees ($5000 for children above 16 years).
The long term sustainability for CIP Saint Lucia as a positive driver of societal and sovereign value. The growing understanding that CIP Saint Lucia is the “AAA stable” for the cream of international HNWI investors.