INVESTORS SNAP UP JAMAICA BOND

NEARLY 10 months after Hurricane Melissa inflicted an estimated US$8.8 billion in damage across Jamaica, international investors have turned out strongly for the Government’s latest US$1-billion bond, allowing the country to borrow at a lower rate than initially indicated.

The bond was heavily oversubscribed after Jamaica returned to the international capital markets last week to raise funds for both debt management and general budgetary needs.

Before the offer was formally launched, investors were initially being guided to an interest rate of about 6.50 per cent. Strong demand subsequently allowed the Government to offer the bond at 6.25 per cent, according to market sources.