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Belgian
State Bonds

Looking for additional income? Opt for State Bonds: with an interest rate known in advance, you know exactly how much your investment will earn year after year.

The Belgian State issues two State Bonds:

  • A 1-year State Bond (June 4, 2025)

  • with ISIN code BE3871296260: 3.20%

  • A 8-year State Bond (June 4, 2032)

  • with ISIN code BE3871297276: 2.80%.

Features of the 1-year State Bond:

  • Issuer: Kingdom of Belgium (Belgian State)
    Issuer rating: Aa3 at Moody’s, AA at Standard & Poor’s. For more information, please visit the Wikifin website.
    Nature of the securities: dematerialised fixed-income debt instruments with a single coupon
    Applicable law: Belgian law
    Issue date: 4 June 2024
    Maturity date: 4 June 2025
    Duration: 1 year
    Currency: Euro
    Denomination and minimum subscription amount: 100 euros
    Listing on the secondary market: as of 5 June on Euronext Brussel
    ISIN code: BE3871296260
    Issuance price: 100% of the nominal value, i.e. 100 euros per denomination
    Total costs included in the issuance price: a placement fee of 0.10%, i.e. €0.10 per €100 denomination. These costs are refunded by the Belgian State.
    Gross Yield: 3.20%
    Net Yield: 2.24%
    Redemption price at maturity: 100% of nominal value

Risks linked to State Bonds

The Belgian State has a good credit rating (Aa3 from Moody’s and AA from Standard & Poor’s). However, State Bonds are subject to certain risks that should be understood before making an investment decision.

 

Issuer Risk: the repayment and payment of interest depend on the solvency of the issuer. The solvency risk of the Kingdom of Belgium is monitored by major rating agencies, of which Moody’s and Standard & Poor’s (S&P) are the best known. For more information, please visit the Wikifin website.

 

Market Risk: the market price of State Bonds may fluctuate due to various factors, including changes in interest rates. Investors who wish to sell their State Bonds before the final maturity date will need to do so at the market price. This can result in a capital gain or loss compared to the nominal value of the State Bonds.

Liquidity Risk:
liquidity risk is the risk that you will not be able to sell your securities because there is no—or only a small—market for them. If your buy/sell order is executed, the price could be much lower/higher than the amount subscribed. A liquidity provider appointed by the State, Florint BV, ensures the liquidity of the State Bonds.

Inflation Risk:
The increase in the prices of goods and services throughout the economy can reduce the purchasing power of the initial deposit compared to its repayment.

Features of the 8-year State Bond:

  • Issuer: Kingdom of Belgium (Belgian State)
    Issuer rating: Aa3 at Moody’s, AA at Standard & Poor’s. For more information, please visit the Wikifin website.
    Nature of the securities: dematerialised fixed-income debt instruments with a single coupon
    Applicable law: Belgian law
    Issue date: 4 June 2024
    Maturity date: 4 June 2032
    Duration: 8 years
    Currency: Euro
    Denomination and minimum subscription amount: 100 euros
    Listing on the secondary market: as of 5 March on Euronext Brussel
    ISIN code: BE3871295254
    Issuance price: 100% of the nominal value, i.e. 100 euros per denomination
    Total costs included in the issuance price: a placement fee of 1.15%, i.e. €1.15 per €100 denomination. These costs are refunded by the Belgian State.
    Gross Yield: 2.80%
    Net Yield: 1.96%
    Redemption price at maturity: 100% of nominal value

Risks linked to State Bonds

The Belgian State has a good credit rating (Aa3 from Moody’s and AA from Standard & Poor’s). However, State Bonds are subject to certain risks that should be understood before making an investment decision.

 

Issuer Risk: the repayment and payment of interest depend on the solvency of the issuer. The solvency risk of the Kingdom of Belgium is monitored by major rating agencies, of which Moody’s and Standard & Poor’s (S&P) are the best known. For more information, please visit the Wikifin website.

 

Market Risk: the market price of State Bonds may fluctuate due to various factors, including changes in interest rates. Investors who wish to sell their State Bonds before the final maturity date will need to do so at the market price. This can result in a capital gain or loss compared to the nominal value of the State Bonds.


Liquidity Risk:
liquidity risk is the risk that you will not be able to sell your securities because there is no—or only a small—market for them. If your buy/sell order is executed, the price could be much lower/higher than the amount subscribed. A liquidity provider appointed by the State, Florint BV, ensures the liquidity of the State Bonds.

 

Inflation Risk:
The increase in the prices of goods and services throughout the economy can reduce the purchasing power of the initial deposit compared to its repayment.

Risks linked to State Bonds

The Belgian State has a good credit rating (Aa3 from Moody’s and AA from Standard & Poor’s). However, State Bonds are subject to certain risks that should be understood before making an investment decision.

 

Issuer Risk: the repayment and payment of interest depend on the solvency of the issuer. The solvency risk of the Kingdom of Belgium is monitored by major rating agencies, of which Moody’s and Standard & Poor’s (S&P) are the best known. For more information, please visit the Wikifin website.

 

Market Risk: the market price of State Bonds may fluctuate due to various factors, including changes in interest rates. Investors who wish to sell their State Bonds before the final maturity date will need to do so at the market price. This can result in a capital gain or loss compared to the nominal value of the State Bonds.


Liquidity Risk:
liquidity risk is the risk that you will not be able to sell your securities because there is no—or only a small—market for them. If your buy/sell order is executed, the price could be much lower/higher than the amount subscribed. A liquidity provider appointed by the State, Florint BV, ensures the liquidity of the State Bonds.

 

Inflation Risk:
The increase in the prices of goods and services throughout the economy can reduce the purchasing power of the initial deposit compared to its repayment.

Costs

The placement commission is paid by the Federal Debt Agency to MeDirect to remunerate the placement of State Bonds. It is therefore not borne by the clients and has no impact on the value of their investment:

 

 

  • 1 year: 0.10% of the nominal amount subscribed, included in the issue price and a variable remuneration not exceeding 0.20% of the amount subscribed.
  • 8 years: 1.15% of the nominal amount subscribed, included in the issue price and a variable remuneration not exceeding 0.20% of the amount subscribed.
  •  

Custody fees: no custody fees
Subscriptions: free through MeDirect
Secondary market transactions: 0.20% with a minimum of 15 euros per transaction

Please refer to the tariffs & charges for more information on the fees associated with the services offered by MeDirect Bank SA.1.15

Fiscality

The taxation regime below is applicable to individual investors residing in Belgium.

 

  • Withholding tax: 30% for 1 and 8-year States Bond.

  •  
  • Securities Transaction Tax (STT): no STT on the primary market (i.e., during the subscription period) or at maturity. STT of 0.12% in the case of buying or selling on the secondary market (with a maximum of 1,300 euros per transaction).

Documents

Product information

The federal government is not obliged to prepare a prospectus for the State Bonds. More information about this new State Bond can be found in the information brochure of the Debt Agency, supplemented with specific information about the costs and taxes associated with subscription through MeDirect.For more information, please visit the Wikifin website.

 

Monitoring your investment

Investors who hold their State Bonds in an investment account with MeDirect can track their value daily through their secure platform or MeDirect application. There are no costs associated with holding these State Bonds in a MeDirect investment account. You can also track the evolution of the State Bonds on the NYSE Euronext Brussels website: Euronext exchange Live quotes.

Want to file a complaint?

Please contact us directly at [email protected].

If you do not agree with the proposed solution, you can, as a private individual, contact Ombudsfin (ombudsman in financial disputes). Please note that you should first file your complaint to MeDirect Bank directly before going to Ombudsfin. OMBUDSFIN – Ombudsman in financial disputes North Gate II – Koning Albert II-laan 8, bus 2 – B-1000 Brussels Phone: +32 2 545 77 70 Fax: +32 2 545 77 79 e-mail: [email protected] – web: www.ombudsfin.be

The Ombudsman in financial conflicts is a relevant competent authority.

In case you’re not satisfied with the handling of your complaint, you can also try to settle your dispute on the European Online Dispute Resolution Centre provided by the European Commission.

Promotion

Receive a bonus of 0.20% on the amount subscribed*

MeDirect offers every customer who subscribes to the State Bonds a bonus of 0.20% on the subscribed amount. The bonus will be deposited automatically into your current account within 15 days following the execution of the subscription.

How to subscribe to the State Bonds?

Log in to your

secure platform.

Not a client yet?

Open an investment
account via your secure platform.

On your secure platform, go to the ‘MeSolo’ category and click on ‘New bond issues’ to discover the available State Bonds.

Choose the bonds that interest you and let the process guide you.

Don’t see the new State Bonds in your MeDirect app yet? Download last version of the app from the App Store or Google Play.