NCB Capital Markets is offering to buy bonds from individuals who exchanged their government paper for one-year notes under the recent debt exchange.
The National Debt Exchange (NDX) offered a special retail note to holders of $25 million or less in government paper, or US$200,000 or less of US dollar notes, which becomes due for repayment by 2014.
The note, which also matures next year, carries a fixed interest rate of five or seven per cent, depending on the currency, or 0.25 - 0.5 percentage points lower than NDX notes that will expire in 2016.
"There are a number of clients who participated in the NDX, who wanted to be patriotic, but who may have genuinely needed the funds now," said Najah Peterkin, regional manager at the investment bank.
Consequently, the company's is targeting individuals who may need cash within the next 12 months.
And even while NCB Capital Markets identified approximatey 300 clients who took on the retail notes, it is not limiting the offer to its existing customers.
"It is for anybody," Peterkin said, "all you need to do is open an account, starting with $200,000."
The bank manager said that notes would not be bought at a discount, so individuals wouldn't lose any principals.
The bonds, which are electronically registered on the Jamaica Central Securities Depository, are easily transferable.
Other banks have also offered customers who participated in the NDX options to improve their cash position.
For instance, First Global Bank has set up a loan facility that will provide short-term funds to investors who have seen the maturity date on their bonds extended, by the recent debt exchange.
All holders of domestic bonds — fixed or variable rate, as well as US dollar — are eligible to apply for a Bond Extension Support Loan.