Proceeds will be used to finance GOJ’s budgetary requirements

Durrant Pate/ Contributor

The Government of Jamaica (GOJ) is reopening its two investment notes seeking to raise J$8 billion from the local capital market.

The two investment notes are the 10.00% fixed rate Benchmark Investment Note (BIN) – Due 2028 and the 9.625% fix rate BIN – Due 2031 with subscription for both offers opening tomorrow May 26, 2023, and a settlement date of Tuesday, May 30, 2023. The fixed-rate 10.00% BIN seeks subscriptions amounting to J$6 billion.

The tenor of the BIN is for four years and 10 months with the yield to maturity to be determined by competitive bidding price. The instrument matures on March 21, 2028. The first interest payment will become due and payable on September 21, 2023.  

Thereafter, interest will be due and payable half-yearly on March 21 and September 21 at the fixed interest rate of 10.00% per annum until maturity on March 21, 2028.

The subscription method is by competitive and non-competitive bidding by auction. Bids allotted on a non-competitive basis will be settled at the weighted average price for the successfully allotted competitive bids.

Term sheet for fixed rate 9.625% BIN

Based on the term sheet for the fixed rate of 9.625% BIN, the subscription volume is for J$ 2 billion with a tenor of eight years and six months with the yield to maturity to be determined by competitive bidding price. The instrument will mature on November 21, 2031, with the first interest payment becoming due and payable on November 23, 2023.  

Thereafter, interest will be due and payable half-yearly on May 23 and November 23, at the fixed interest rate of 9.625% per annum until maturity on November 21, 2031. Competitive and non-competitive bidding by auction with be the means of determining subscription.

Bids allotted on a non-competitive basis will be settled at the weighted average price for the successfully allotted competitive bids. The money raised from the offers will be used to finance GOJ’s budgetary requirements.