Treasury Notes and Debentures are available in denominations of $1,000.00, with the minimum investment size being $1,000.00. A Treasury Note is an instrument issued for a period ranging from one to ten years, while a Debenture is an instrument with a maturity period of over ten years. These fixed income instruments are available only at the Central Bank of Barbados.
Government determines the rate of interest payable and when these instruments are to be issued. Government may, therefore, offer a four-year Treasury Note at a determined rate of interest or a seven-year Note at a different rate of interest. Interest is paid semi-annually. The interest payment dates are detailed in the prospectus published in the daily newspaper, giving notice of the opening of the issue. Similar to the Savings Bonds, individuals must be at least eighteen (18) years old to invest in these securities. However, institutional investors and non-residents of Barbados can hold Treasury Notes or Debentures.
Unlike Savings Bonds, which are sold on a discounted basis, Treasury Notes and Debentures are available at face value. Additionally, these instruments attract a withholding tax of 12.5%. However, pensioners (60 years or over) are exempted from the payment of withholding taxes on their securities.
A Treasury Note or Debenture is transferable and can be sold to another individual prior to maturity, if an emergency arises where cash is needed. In such a case, the investor would take the certificate to a registered securities broker, who will execute the sale transaction on his or her behalf. Both Treasury Notes and Debentures are tradable on the Barbados Stock Exchange.