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Socially responsible investment at the heart of CIP St. Lucia COVID Bond innovation

In the light of the global socio-economic challenges created by the COVID crisis, countries were forced to bring innovation to the heart of their efforts in moving their economies forward. CIP St. Lucia was no exception and being aware of the need for pragmatic modernization and understanding the needs of prospective investors, these twin drivers were at the heart of the CIP zero coupon COVID Bond issue under the St. Lucia Citizenship by Investment Programme.

Nestor Alfred, CEO of CIP St Lucia

Nestor Alfred, CEO of CIP St Lucia commented, “We are all about sustainability and longevity. Our market leading governance and due diligence is at the heart of our offer to our investors – the value of their investment will remain stable and grow steadily. Just as importantly, lifelong enhanced mobility is their guaranteed yield.”

However, there is more to this story than the standard CIP offering to global investors, be it enhanced mobility or an ability to hedge volatility, which are at the core of all investment migration programs. Through the COVID bond program, CIP St Lucia found an innovative solution that created a “win-win” for investors and St. Lucians.

• By creating a new bond offering, investors inject $250,000/300,000 with varying holding periods onto the sovereign balance sheet, thereby creating enhanced autonomy for St. Lucia against the current challenging economic dynamic.

• Due to the investment structure, the COVID bond offering is particularly attractive to families looking to augment global mobility and hedge volatility. Fully backed by the government and therefore very low risk, the coupon will be repaid after 5/6/7 years depending on the tenor selected – creating a favourable long term value proposition compared to donation or real estate options.

Nestor concludes, “The CIP St Lucia COVID bond can be seen as the only socially responsible investing (SRI) option in the investment migration industry. Our innovative investment structure means that investors can support a developing economy and sovereign state in a time of need. But this isn’t charity, this is a sophisticated investment choice that creates value for St Lucia, St Lucians and investors alike.

St Lucia gains from a sustainable liquidity source. Investors gain a value catalyst from enhanced global mobility, and lifelong yield and the bond pricing. It’s a real win, win – which in the time of COVID is pretty rare.”

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