Feb 2017 Financial News

Govt looks to raise $1 bill bond at 4.1%

Feb 01, 2017

Government on Tuesday announced that it was proposing to raise $1 billion through the issue of an eight-year, fixed rate bond that will pay a coupon rate of 4.10 per cent a year.

The bond is intended to assist in financing the government’s recurrent expenditure and will be issued on February 14.

The issue is the second central government bond for the 2017 fiscal year. The first bond bond was issued on December 19, 2016 and was a six-year, fixed rate bond for $1 billion, which had a coupon rate of 3.80 per cent.

The information memorandum announcing the bond issue stated that T&T’s public debt to GDP ratio—which excludes all securities issued for sterilization purposes—stood at 56.6 per cent at the end of December 2016, compared with 52.1 per cent one year earlier.

The information memorandum also stated that T&T had US$9.46 billion in gross official reserves at the end of December 2016, which was equivalent to 10.5 months of import cover.

Source:
Trinidad Guardian
Wednesday February 1, 2017

http://www.guardian.co.tt/business/2017-02-01/govt-looks-raise-1-bill-bond-41