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Shaw raises cheap US$400m through int'l capital market
Published: Tuesday | February 15, 2011 7 Comments
Shaw
Finance Minister Audley Shaw has announced the successful placement of a US$400-million eurobond at a record interest rate of 7.95 per cent, the lowest rate at which Jamaica has ever raised funds on the international capital market. The offer replaces a US$400-million eurobond that was issued in 2001 at 11.75 per cent and which matures in May. The lead managers for the transaction - Deutsche Bank Securities Inc and BNP Paribas Securities Inc - reported that the issue was three times oversubscribed, with more than US$1 billion in orders from several institutional accounts in the United States and Europe, as well as some [COLOR=blue !important][COLOR=blue !important]investors[/COLOR][/COLOR] from the Latin American and Caribbean region.
"Importantly, today's offer met specific liquidity and structural requirements which now places it in the [COLOR=blue !important][COLOR=blue !important]Emerging [COLOR=blue !important]Market[/COLOR][/COLOR][/COLOR] Bond Index, making it more attractive to investors," stated a release from the finance ministry yesterday.
In reacting to the successful placement of the issue and its over-subscription, Shaw said: "Notwith-standing a tightening in the international market, I am very pleased that we were able to meet my original objective of staying within a seven to eight per cent band. It is an unmistakable endorsement in the direction Jamaica is taking, and I intend to press ahead with scheduled reforms to build further business confidence."
The floating of yesterday's bond follows a series of meetings between Shaw and [COLOR=blue !important][COLOR=blue !important]institutional [COLOR=blue !important]investors[/COLOR][/COLOR][/COLOR] across the US cities of New York, Los Angeles, and Boston last week, and with European [COLOR=blue !important][COLOR=blue !important]investors[/COLOR][/COLOR] in October 2010.
In these meetings, the minister updated more than 100 investors on recent developments in the Jamaican economy and discussed the country's overall economic programme. The investor updates were held in anticipation of the offer.
Shaw was accompanied by Financial Secretary Dr Wesley Hughes; Bank of Jamaica Governor Brian Wynter; Pamella McLaren, director of debt management; and Hillary Robertson, technical adviser.
Published: Tuesday | February 15, 2011 7 Comments
Shaw
Finance Minister Audley Shaw has announced the successful placement of a US$400-million eurobond at a record interest rate of 7.95 per cent, the lowest rate at which Jamaica has ever raised funds on the international capital market. The offer replaces a US$400-million eurobond that was issued in 2001 at 11.75 per cent and which matures in May. The lead managers for the transaction - Deutsche Bank Securities Inc and BNP Paribas Securities Inc - reported that the issue was three times oversubscribed, with more than US$1 billion in orders from several institutional accounts in the United States and Europe, as well as some [COLOR=blue !important][COLOR=blue !important]investors[/COLOR][/COLOR] from the Latin American and Caribbean region.
"Importantly, today's offer met specific liquidity and structural requirements which now places it in the [COLOR=blue !important][COLOR=blue !important]Emerging [COLOR=blue !important]Market[/COLOR][/COLOR][/COLOR] Bond Index, making it more attractive to investors," stated a release from the finance ministry yesterday.
In reacting to the successful placement of the issue and its over-subscription, Shaw said: "Notwith-standing a tightening in the international market, I am very pleased that we were able to meet my original objective of staying within a seven to eight per cent band. It is an unmistakable endorsement in the direction Jamaica is taking, and I intend to press ahead with scheduled reforms to build further business confidence."
The floating of yesterday's bond follows a series of meetings between Shaw and [COLOR=blue !important][COLOR=blue !important]institutional [COLOR=blue !important]investors[/COLOR][/COLOR][/COLOR] across the US cities of New York, Los Angeles, and Boston last week, and with European [COLOR=blue !important][COLOR=blue !important]investors[/COLOR][/COLOR] in October 2010.
In these meetings, the minister updated more than 100 investors on recent developments in the Jamaican economy and discussed the country's overall economic programme. The investor updates were held in anticipation of the offer.
Shaw was accompanied by Financial Secretary Dr Wesley Hughes; Bank of Jamaica Governor Brian Wynter; Pamella McLaren, director of debt management; and Hillary Robertson, technical adviser.
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