The National Investment Fund's public offer of fixed-income bonds received overwhelming support with a value of over $1 billion in valid applications to the bond.

The National Investment Fund Holding Co Ltd (NIF), in a release detailing the results of the allocations, said the offer received 3,861 valid applications.

The release said applications from individual investors amounted to $735.5 million, about 184 per cent of the size of the offer, which amounts to $400 million.

Small business entities’ applications were valued at $28.2 million or seven per cent of the offer.

Credit unions made applications valued at $302.6 million or 76 per cent of the offer size.

The NIF was incorporated on May 29, 2018, for the purpose of holding and monetising state assets.

The intention of the NIF was to offer citizens, through public offers, fixed-income bonds to all citizens.

A fixed-income bond is a loan sold or issued by governments or companies and purchased by investors with the promise that it will be repaid at maturity and have regular interest payments added to the amount. The NIF2 bond was issued on February 9 and will mature on the same date in 2029.

In a release on February 15, Finance Minister Colm Imbert hailed the issuance of the NIF2 bond as a “tremendous success.”

“The success of NIF2 is an overwhelming vote of confidence in the National Investment Fund and by extension a vote of confidence in the Government’s management of the assets acquired by the Government in return for the money spent in the Clico bailout,” the release said.

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