THE Government of Jamaica has mandated French bank BNP Paribas and Germany’s Deutsche Bank to arrange a series of fixed income investor meetings with major US institutional investors beginning today, with a US dollar SEC-registered offering expected to follow next week subject to market conditions.

Should the Government move ahead next week, the action will take place well ahead of a US$400 million euro bond which matures in May and for which the new bond will be used to refinance.

Commenting on the timing of the potential issue, Oppenheimer’s Dr Carl Ross notes that the market “has had a moderately difficult time in digesting the mountain of new issuance this year”.

Emerging market issuers are estimated to have issued a record US$42 billion on the international capital market in January, of which 75 per cent was from corporate issuers.

Ross argues that “Jamaica is wise to access the market as soon as possible, while it is still in compliance with the IMF programme, and before the budget process begins in earnest”.

He notes that the IMF programme calls for a major further reduction in the fiscal deficit for the next Fiscal Year 2011/2012, and that the budget discussions are likely to consume policymakers’ attention in the coming months.

The Jamaican delegation includes Minister of Finance and the Public Service Audley Shaw, Governor of the Bank of Jamaica Brian Wynter, Financial Secretary in the Ministry of Finance and the Public Service Dr Wesley Hughes, Senior Director of the Debt Management Unit Mrs Pamella McLaren, and Technical Advisor to Minister of Finance and the Public Service, Hilary Robinson.

It is anticipated that the Jamaican team will meet with major institutional investors in Los Angeles on Wednesday, spend Thursday in New York, and Friday in Boston.