Government buys back three of its US$ debt instruments before maturity
The Government of Jamaica (GOJ) is buying back three of its US$ debt instruments before maturity.
These instruments were floated on the international capital market. The buyback invitation, which opened on Wednesday (September 4), sees the Government doling out well over US$3 billion to buy back the debt instruments, slated to mature in 2022, 2025 and 2028.
The debt instruments, as at the date of invitation are: US$248,974,000 principal notes for 11.625 per cent, due 2022; US$183,518,000 principal notes for 9.25per cent, due 2025; US$800,000,000 principal notes for 7.625per cent, maturing 2025; and US$1,850,450,000 principal notes for 6.75 per cent notes and maturing in 2028.
In a statement on Wednesday, the Bank of Jamaica (BOJ) reports that “each instrument will be bought in blocks of US$1000 plus “any accrued and unpaid interest on such “old notes” up to (but excluding) the settlement date”.
According to the BOJ, “the GOJ will pay US$1,223.75 for 1000 units of 11.625 per cent notes, due 2022; US$1,290 for 9.250 per cent notes, due 2025; US$1,195 for 7.625 per cent notes due 2025; and $1,181.25 for 6.750 per cent notes due 2028.”
According to the invitation, “the aggregate purchase price is the maximum amount to be paid by the GOJ for the outstanding principal amount of notes validly tendered and accepted for purchase pursuant to this invitation, not including interest accrued and unpaid thereon (the ‘Aggregate Purchase Price’). The aggregate purchase price will be determined by Jamaica in its sole discretion.”
The invitation will remain open for a week, expiring on Tuesday, September 10 at 5:00 pm Eastern Standard Time. However, the GOJ holds the right to terminate the offer or to extend as it sees fit. The GOJ can also withdraw any of the notes.
Bank of America Securities Inc and CitiGroup Global Markets Inc will be acting on the GOJ’s behalf as brokers and deal managers for the invitation.
