Jul 2016 Financial News

Govt's US$1b bond oversubscribed

Jul 29, 2016

Government’s US roadshow to float a US$1 billion bond has been oversubscribed by three and a half times, Minister in the Office of the Prime Minister Stuart Young said yesterday.

Young, who spoke at the post-Cabinet media conference, said Finance Minister Colm Imbert who is in the US leading a T&T delegation on a roadshow to promote the bond, sent him a text message on the outcome of the issue.

Imbert announced plans a few weeks ago to do the roadshow, pitching to several US financial institutions, to raise a total US$1 billion through sale of 10 and 12 year international bonds. This is to raise funds to finance development programmes and for budgetary purposes.

The bond was due to be priced yesterday. Its price—the amount of interest it will pay twice a year for ten years—is expected to be between 4.40 per cent and 4.95 per cent.

The roadshow team, which included officials from the Finance Ministry, Central Bank and Tobago House of Assembly, worked via two teams in Los Angeles and New York and also targeted investors in Boston and other locations. Presentations were made to approximately 20 premier international banks and investors.

Young said Imbert had texted to him that the “bond (was) successful” and also confirmed the interest was so great that it was oversubscribed three and half times at an interest rate of four and a half percent. Young said this demonstrated a great level of confidence by the international market “in T&T paper” and Government’s handling of the economy. He said a similar high level of interest was displayed when Republic Bank did a $2b bond issue locally.

Although the US bond was oversubscribed by three and a half percent, Young said, Government would only be pursuing the US$1b level. He referred queries on whether the bond funding would be used to pay contractors to Imbert and said Government’s positions is that all legitimate claims will be paid. He also said Imbert, who is due back in the country early next week, will deal with postal workers’ and other payments issues.

Source:
Gail Alexander
Trinidad Guardian
Friday July 29, 2016

http://www.guardian.co.tt/business/2016-07-29/govt%E2%80%99s-us1b-bond-oversubscribed