The Development Bank of Latin America and the Caribbean (CAF) has issued its first-ever bond denominated in Jamaican dollar on the international capital markets.

The instrument is valued at J$4 billion or US$26.1 million, CAF said on its website.

CAF said the bond issuance is in line with its mission to assist its shareholder countries in the development and deepening of their domestic capital markets and local currencies.

“This operation constitutes a milestone, since it demonstrates CAF’s support for such a sizeable transaction in local currency and gives the opportunity to foreign investors to participate in its capital market,” Executive President of CAF, Sergio Diaz-Granados, is quoted as saying at a recent meeting with Jamaica’s Minister of Finance and Public Service, Dr Nigel Clarke.

Dr Clarke and Diaz-Granados reportedly agreed to continue to strengthen the relationship through financing, technical assistance and generation of knowledge and to work together to improve the quality of life of Jamaican citizens as well as enhance the collaboration between the Caribbean and Latin America.

The country issued its first-ever Jamaican dollar bond on the international market last year, in the amount of J$46.6 billion or US$300 million.

In a release, the finance ministry noted that the landmark offering accomplished the Government’s objective of opening local currency debt issues to international investors. This, it said, will help to effectively reduce the country’s exposure to US dollar denominated debt as interest and principal payments are linked to the value of the Jamaica dollar.