…. 10.75% return offers emaSwati opportunity to invest in national development
BY MBONGENI NDLELA
MBABANE– Government of the has opened a new E200 million Government Infrastructure Bond to the public, creating an opportunity for individuals, businesses and institutional investors to earn competitive returns while directly contributing to the country’s infrastructure development.
The bond, issued through the Central Bank of Eswatini (CBE) on behalf of Government, carries a fixed annual coupon rate of 10.75 percent and will mature on 31 July 2034, making it an attractive long-term investment for those seeking stable returns.
The bond auction is scheduled for 28 July 2026, with interested investors required to submit their bids through any of Eswatini’s four commercial banks acting as Primary Dealers.
Funding National Development
Government said proceeds from the bond will finance critical infrastructure projects that are expected to stimulate economic growth, improve public services, create jobs and strengthen the country’s long-term productive capacity.
Infrastructure investments are widely recognised as a catalyst for economic expansion because they improve transport networks, utilities, public facilities and the overall business environment. Such projects also generate employment opportunities during both construction and operation while supporting private sector investment.
The latest issuance demonstrates Government’s continued commitment to mobilising domestic capital to finance strategic national projects without relying entirely on external borrowing.
Strong Investment Returns
One of the key attractions of the infrastructure bond is its fixed annual return of 10.75 percent, providing investors with predictable income over the eight-year investment period.
Interest payments will be made twice a year, on 31 January and 31 July, offering investors a regular source of income until the bond reaches maturity.
According to the bond terms, interest earned will not be subject to withholding tax, further improving the effective return for investors.
At maturity on 31 July 2034, investors will receive back their full capital investment together with all scheduled interest payments made throughout the investment period.
Accessible to Individuals and Institutions
Unlike many investment products reserved for large institutions, the Government Infrastructure Bond accommodates both ordinary citizens and institutional investors.
Individual investors may participate through non-competitive bids starting from E10 000, while institutional direct bidders require a minimum investment of E5 million. Applications must be submitted through participating commercial banks before 10:00 am on the auction date.
The securities will be issued electronically through the Central Securities Depository (CSD), improving efficiency and security.
Supporting Local Capital Markets
The bond forms part of the E2 billion Government Infrastructure Bond Programme established in 2017 and listed on the Eswatini Stock Exchange. Successful investors will also be able to trade the bonds on the secondary market from 10 August 2026 in multiples of E10 000.
Safe Investment Option
Government securities are generally regarded as among the safest investment instruments because they are backed by the sovereign state. For conservative investors seeking predictable returns and capital preservation, infrastructure bonds provide an attractive long-term investment while helping finance national development.
How to Apply
Interested investors are encouraged to visit any commercial bank to obtain application forms and guidance. Additional information is available from the Central Bank of Eswatini Financial Markets Department via 2408 2294, 2408 2726, 2408 2210, 7808 0072 or email CBE_Domestic_Markets@centralbank.org.sz. The full Call to Tender provides comprehensive details ahead of the 28 July 2026 auction.
(Courtesy Pic)
