What is the innovation?
Palau Savings Bonds, as well as future bond issuances, will help the Republic of Palau raise capital for developmental lending and help investors grow their investments.
Palau Invest will become a trusted platform for bond investors, including Palauan citizens, and the Republic of Palau, offering a convenient and safe way to participate in national development.Â
What Palau Savings Bonds and Palau Invest bring
Keys for Successful Implementation
 Palau Savings Bonds
- Prospectus approval from Congress
- Data collection and analysis
- Continuous monitoring of market conditions
- Transparent communication with bond investors
Palau Invest Platform
- Platform safety and convenience
- Public awareness
- Platform user and staff training
- Continuous feedback and improvementÂ
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Other challenges
Capacity constraints
System maintenance costs (initial cost was free)
Regulatory compliance
Solutions
Smaller initial issuance(s)
Training with Soramitsu
Fee for bond transactions
No secondary market (at this time)
Application example to Pacific Region
Palau Savings Bonds
Retail market – mostly unexplored
Close comparison: Fiji Infrastructure Bonds
Other PICs that issue bonds include Vanuatu and Tonga
Successful stories of retail bonds from neighbors, Philippines and Indonesia
Palau Invest Platform
Sale of bonds: Platforms used, if there are any, are for institutional investors rather than retail investors
Philippines: one can buy savings bonds directly online from the Bureau of the Treasury or via a mobile app (e.g. Bond.PH)
Blockchain technology: Mostly on CBDCs, including Soramitsu’s proof of concept in the Solomon Islands
Scalability and Replicability
Scalable? Yes
Future, diverse issuances are expected.
Future introduction of other payments methods, a possibilityÂ
Replicability?Â
Palau Savings Bonds – easy
Palau Invest Platform – Not sure with blockchain technology
