Treasury Certificates offer a secure and profitable avenue for Non-Financial Public Sector Bodies (NFPSBs) looking for reliable short-term investments. Managed by the Bank of Mauritius, these certificates are designed to provide predictable returns while safeguarding public funds. In this comprehensive guide, we explore the benefits, procedures, and strategies to maximize your investment in Treasury Certificates.
What Are Treasury Certificates?
they are government-backed financial instruments issued by the Bank of Mauritius. They serve as short-term debt securities, allowing public sector bodies to invest funds safely. Unlike other volatile investments, Treasury Certificates guarantee the principal amount while offering a fixed interest rate. This combination of safety and predictable returns makes them highly attractive for public institutions.
Key Features of Treasury Certificates
- Issued at face value (par) with a maturity period of 182 days.
- Interest rate based on the latest weighted yield from 182-day Government Treasury Bills plus a margin of 0.20%.
- Minimum investment starts at Rs100,000, with increments of Rs50,000.
- Flexible application on a rolling basis, Monday to Friday, 10:00 AM to 2:00 PM.
- Settlement occurs on a T+2 basis, ensuring timely transaction completion.
Why Public Sector Bodies Should Consider Treasury Certificates
Investing in these Certificates provides public sector institutions with a low-risk option to grow their funds efficiently. The stability and guaranteed returns reduce financial uncertainty and allow organizations to plan their budgets confidently. Additionally, the transparency of the Bank of Mauritius ensures that all investment processes are reliable and legally compliant.
Benefits for Institutional Investors
- Secure Returns: Principal amount is guaranteed by the government.
- Predictable Cash Flow: Interest is fixed, allowing precise financial planning.
- Easy Access: Applications can be submitted digitally and physically for convenience.
- Short-Term Investment: 182-day maturity provides quick liquidity.
Step-by-Step Guide to Applying for Treasury Certificates
Applying for these Certificates is straightforward but requires attention to detail. NFPSBs must follow specific procedures to ensure their applications are processed correctly.
Step 1: Download and Complete Application Forms
Application forms can be downloaded from the Bank of Mauritius official website. Each form must be signed by authorized representatives and stamped with the institution’s official seal. This ensures authenticity and compliance with regulatory requirements.
Step 2: Submit Scanned Forms via Email
Scanned copies of completed forms should be emailed to [email protected] between 10:00 AM and 2:00 PM on business days. Early submission helps in confirming your application before the settlement date.
Step 3: Send Original Forms to the Bank
The original forms must reach the Bank of Mauritius by 1:00 PM on the settlement date. They can be sent via post or delivered in a sealed envelope marked “Purchase of Treasury Certificates” to the Financial Markets and Reserve Management Division.
Interest Rates and Investment Strategy
The interest rate on Treasury Certificates is linked to the most recent 182-day Government Treasury Bills’ weighted yield plus a 0.20% margin. For example, between 22–27 August 2025, the rate is 4.76% per annum. Understanding the timing and interest rate trends can help institutions optimize their investment strategy.
Maximizing Returns Safely
To maximize returns, institutions should consider the timing of purchases, monitor Treasury Bills’ auctions, and plan cash flow needs carefully. the Certificates offer flexibility and security, which is ideal for public sector bodies seeking stable and predictable returns.
Common Questions About Treasury Certificates
Who Can Apply?
Non-Financial Public Sector Bodies (NFPSBs) are eligible to apply. These include government departments, statutory bodies, and other public sector entities that manage surplus funds.
How is the Interest Paid?
Interest on Treasury Certificates is calculated annually and paid at maturity. This allows institutions to know exactly what returns to expect, facilitating accurate financial planning.
Are Treasury Certificates Risk-Free?
While all investments carry some risk, these Certificates are considered extremely low-risk due to government backing and fixed interest rates. They are ideal for preserving capital while earning reliable income.
Conclusion: Secure Your Public Sector Funds Today
Treasury Certificates provide a practical, low-risk, and highly transparent investment opportunity for public sector bodies. With structured application processes, guaranteed returns, and short-term maturity, these certificates are an essential tool for financial planning. By leveraging this opportunity, NFPSBs can ensure capital safety while earning predictable income, contributing to overall fiscal stability and efficiency.
For further insights into government-backed investment opportunities, explore our related articles.
