GOJ TAPS MARKET FOR US$1B

The Government of Jamaica (GOJ) has gone to the international capital markets to raise a US$1 billion ($157.62 billion) unsecured bond to support its liability management strategy and budgetary objectives.

The prospectus was published on Wednesday through the United States Securities and Exchange Commission (SEC), three weeks after GOJ filed its registration statement to issue debt securities. According to a roadshow document seen by the Jamaica Observer, US$600 million is to be used to fund a tender/exchange offer, with the balance earmarked for general budgetary purposes. A source close to the matter also indicated that the new bond is expected to mature in 2037.

At the same time, GOJ launched the tender/exchange offer for holders of the three existing global bonds, tying the new borrowing directly to its wider effort to manage the country’s external debt.