The Development Bank of Seychelles (DBS) will issue a five-year bond worth 50 million rupees with a 6 percent coupon, central bank said on Friday.
The Central Bank of Seychelles, which issued the bond's prospectus on behalf of DBS, said the bond will be on sale from February 28 until the limit of the issue is reached, or until it was replaced by another bond issue.
"A maximum of 50 percent of the bond issue will be available to commercial banks," the prospectus said.
"The remaining balance will be reserved for non-commercial bank investors for a period of 30 days after the opening date of the bond issue, after which the commercial banks will have the option to take up the remaining balance."
DBS is 57 percent owned by the government of Seychelles, while French development agency AFD has a 20 percent stake, and the European Investment Bank 16 percent.
The rest of the shareholding is split up among DEG, member of KfW Bankengruppe (KfW banking group) of Germany, and Seychelles International Mercantile Banking Corporation.
DBS does most of its lending to the agriculture, fisheries and tourism sectors.
The bond is open to both local and international investors, the prospectus said.