PORT OF SPAIN, Trinidad (CMC) — The Central Bank of Trinidad and Tobago (CBTT) said that a one-billion-dollar (US$160-million) eight-year bond by the Trinidad and Tobago government has been oversubscribed.

The CBTT had in January announced that the Keith Rowley administration was auctioning the bond at 4.10 per cent interest and would have been issued on February 14.

“This bond is intended to assist in financing the government’s recurrent expenditure. The government is also mindful of its role in the development of the local capital market and, in particular, the development of the Government Bond market. To this end, it continues to provide securities that will cater to the needs of all investors.

“This Bond issue is the second Central Government Bond issue for fiscal year 2016/2017. The first bond issue for the fiscal year took place on December 19, 2016 and was a TT$1,000 million 6-year bond with a coupon rate of 3.80 per cent issued at par,” the CBTT said.

It said the new bond was allotted at par, or a clearing price of TT$100.00 per TT$100.00 face value, providing investors with a yield to maturity of 4.10 per cent.

“Successful competitive bidders, as well as non-competitive bidders, will be required to pay the clearing price for the bond,” the CBTT said, adding that “due to the demand at the par price, competitive investors who bid at par price were allocated approximately 99.6 per cent of the face value bid, and are due a refund for payments made for the unallocated portion of their bid”.