What you need to know about the wildly successful Belgian government bonds

In just one day, the subscription of the new state bonds was a resounding success, raising an impressive amount of more than 151 million euros. Both through debt agencies and banks, investors responded enthusiastically by showing significant interest in these financial instruments.

Indeed, since midnight on Thursday, investors have reacted to the implementation of the subscription period for new government bonds. In just one day, about 95 million euros were collected by the debt agency, while banks contributed more than 56 million. Belgians’ preference has clearly shifted towards the one-year version of these new financial instruments.

The one-year version of the new government bond is exempt from reduced taxation.

Future one-year state bonds to be issued on March 4 will not benefit from the tax benefits their predecessors received last September. As a result, Belgian interest in these investments seems, as expected, less marked than at the end of the summer. The subscription period is open from midnight on Thursday and will continue until March 1, with a fundraising cap at 6 billion euros.

At the close of the first day of subscription, the placing institutions, made up of a total of 16 banks, registered an investment of around 56.4 million euros. A significant share, €52.2 million, was allocated to twelve-month bonds, while three-year bonds attracted investments of €4.2 million. As for the debt agency, the counter showed about 95 million euros, with a strong participation of 94 million through twelve-month bonds (3,632 subscriptions) and 1 million through three-year bonds (257 subscriptions). In addition, it should be remembered that another government bond with a duration of one year shows a net yield of 2.1%, following Vivaldi’s decision to subject it to the “classic” taxation of 30%, made official last Wednesday.

In September, the first one-year government bond, an unprecedented initiative given the normal three-year duration for Belgian public bonds, was a resounding success, raising nearly 22 billion euros from more than 600,000 citizens and reaching 2 billion for the first time. Subscription day, in collaboration with banks and debt agencies.