For the first time in three years, Belgium will again issue State bonds, the Federal Debt Agency announced on Monday.
State bonds, which are intended for private investors, were typically issued about four times a year. However, low interest rates have diminished their appeal and the last time they were issued in Belgium was in March 2019. Then, a ten-year government bond had an interest rate of 0.55% and yielded just under €4 million, reports Belga News Agency.
People buying a state bond lend their money to the Government for a number of agreed years. In exchange, the Government pays them an agreed interest each year. On the maturity date, the person who bought the bond gets their capital back.
The issue will take place on 4 June, when two State bonds will be offered to the public: one with a 5-year maturity and one with a 10-year maturity.
The rate for each will be set on Friday 20 May. The subscription period will run from Tuesday 24 May to Friday 3 June, with payment on Tuesday 7 June.