Pacific

Tongan Government offering to sell shares in development bank

09:36 am on 14 February 2014

The Tongan Government, currently the sole shareholder in the Tonga Development Bank, is offering to sell 40 percent of its shares.

Matangi Tonga reports that a share price for the 560,000 shares is to be negotiated but will be at no less than $5.30 US.

A statement released by the Ministry of Public Enterprises today, stated that the purchaser or investor, in addition to buying the shares must deposit no less than 7.9 million USD with the TDB for an initial term of five years, under the bank prevailing interest rate.

This investment should also be made extendable for another five years.

The Ministry says the primary purpose for the sale of government shares is to establish an avenue for the provision of funds for national development.

The sale of government shares is open until 4pm, on February the 28th, 2014.