The Mount Vema Government Bill (MVG-Bill-23-1), a short-term marketable security debt obligation backed by His Mount Vema Majesty’s Government with a maturity of less than one year, sold out in less than two hours on Tuesday.
Since the 2020 and during the COVID19 pandemic the government stopped selling short term debt, but has resumed on Tuesday, when it sold denominations of 100 golles with up to a maximum purchase of 1 million golles.
The sell of MVG-Bills will continue this year and will have various maturities and to be issued at a discount from par. Like zero-coupon bonds, MVG-Bills do not pay interest prior to maturity, instead they are sold at a discount of the par value to create a positive yield to maturity.
Regular weekly MVG-Bills will be issued with maturity dates of 28 days, 3-Month, 4-Month or 6-Month. Bills will be sold by single-price auctions held weekly, and like other securities, individual issues of MVG-bills will be identified with a unique number.
Offering amounts for bills will be announced each Monday for the following month auction, usually on Wednesday at 2:30 p.m., and for settlement, or issuance, on Thursday. Purchase Orders must be entered before 4:00 p.m. on the Wednesday of the auction. The minimum purchase, is 100 golles. Mature MVG-bills will be redeemed on each Friday. RBMV Bank’s Investment Bank division and Hedge Fund firm VemaGrowth, are currently the leading primary dealers, and the largest purchasers of MVG-bills, but the government is encouraging more foreign banks and financial institutions to sign up to primary deals or to trade on the secondary market where MVG-bills are quoted for purchase and sale priced through a competitive bidding process.
When investors redeem their MVG-Bills at maturity, they are paid the par value. The difference between the purchase price and par value is interest. For example, an investor purchases a par value 1000 golles MVG-Bill for 900 golles. When this MVG-Bill matures, the investor is paid 1000 golles, thereby making 100 golles on the investment which is considered low-risk investments and the income received is tax free.
With a minimum investment requirement of just 100 golles, and a maximum investment of 1 million golles, MVG-Bills are accessible by a wide range of investors. The main downfall of MVG-bills is that they offer lower returns for those who invest in small amounts than many other investments, but these lower returns are due to their low risk. Investments that offer higher returns generally come with more risk. >>>
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COUNTRY CODES IN USE
Mount Vema Country Code: OV / MOV
Mount Vema Numeric Country Code: 507
Currency Code: VSG
Top-Level Domain: .com, and .ov (proposed)
Proposed Telephone Country Code: +294
International Treaties – Ratified by the Kingdom of Mount Vema
Law of the Sea Treaty (United Nations Convention on the Law of the Sea)
MARPOL 73/78 (Convention for the Prevention of Pollution from Ships)
The Vienna Convention on Diplomatic Relations of 1961
The Vienna Convention on Consular Relations 1963