SINPF Board to purchase $100 million SIG 5 Year Domestic bond

The Minister of Finance has approved the SINPF Board’s request to purchase up to $100 million development bonds currently being offered by the government.

This approval has enabled the Board to tender on a competitive basis the purchase of government development bonds currently administered by the Central Bank of Solomon Islands, over a period of at least 3 months.
The Board has successful tendered and purchase 2 bonds separately for a total of $60 million. The 1st bond has a face value of $40 million with a coupon rate of 4% was purchased at a discount of $39,802,950.60. This is for a total return of 4.11% when taking into account the discount. During the term of the bond the Board will receive an annual fixed interest of $1,600,000 per annum that will be paid half yearly.

The 2nd successful bond was once again purchased at a discount, has a face value of $20 million and a coupon rate of 4% for a total return of 4.44% when taking into account the discount. The Bond was purchased for $19,607.25. Annual interest of $800,000 will be paid half yearly during the term of the bond.

Under the Board’s strategic asset allocation (SAA), the Board has a target exposure limit of 10% with a maximum limit of 15% of its gross investment portfolio to the government sector. This strategic allocation limits the risk exposure to government to 15% of our gross investments’ portfolio.

SINPF total exposure to Solomon Islands Government now stands at $372 million or 9.9% of the Fund’s total investments portfolio