COVID-19: PM announces $120m Domestic Development Bond

Prime Minister Hon. Manasseh Sogavare, MP has officially announced the COVID-19 Domestic Development Bond of up-to SBD$120 Million issued by the Government and available to interested buyers.

“There are up to 5 domestic interested buyers of the COVID-19 Development Bonds, but my Government is considering negotiating with 3 prospective buyers.” The Prime Minister stated. 

The COVID-19 Domestic Development Bond will be negotiated according to the Government’s borrowing guidelines and processes to be scheduled under the 2020 Annual Borrowing Appropriation.

“Good citizens, the COVID-19 Development Bonds are issued as part of the strategy to mobilize resources to fund the Government’s COVID-19 Economic Stimulus Package,” Hon. Sogavare said.

“Key usage of the COVID-19 Bond will be directed towards major infrastructures which include bridges, roads and wharves that connect key productive and resource sector hubs, as well as infrastructure that connect to essential public services such as health and education,” said the Prime Minister.

According to the Prime Minister, a fraction of the COVID-19 Bond will be used as equity injection into ICSI’s portfolio companies namely Soltuna, KFPL, Solomon Airlines as well specific investments and products of the Development Bank of Solomon Islands.

“These investments act as stimulus spending into the local economy because of the anticipation on engagement of local contractors. The investments also play an important role as a catalyst towards medium to long-term economic growth in Solomon Islands,” he said.

The COVID-19 Development Bond transaction is expected to send a positive signal to external investors that our financial and economic environment remains resilient, despite the social and economic fallout, as a result of the COVID-19 pandemic.

Prime Minister Sogavare further expressed the Government’s gratitude to the prospective buyers of the COVID-19 Domestic Development Bond.

“Their confidence in the Government’s effort to ensure that economic activities and growth remain vibrant is welcoming, despite the challenges we are facing as a country,” Hon. Sogavare reiterated.

The Democratic Coalition Government for Advancement (DCGA) is fully committed to the fight against COVID-19.